LIC Nepal to Issue 88.45168 Percent Right Shares | Application Submitted to SEBON

November 3, 2023 | Investopaper

Life Insurance Corporation Nepal (LICN) is planning to issue right share to the shareholders. For this purpose, the company has submitted an application to the Securities Board of Nepal (SEBON) on Ashwin 29, 2080 BS. Only after the approval from the regulatory body SEBON, the company can issue the shares to the public.

Nepal Insurance Authority has already granted permission to the company for the right issuance. Similarly, the company has received endorsement from its Special General Meeting held on Magh 3, 2079 BS.

The board of directors’ meeting of the company held on Bhadra 13, 2079 BS had decided to sell right shares in the ratio 1:0.8845168. This means that shareholders with 100 shares can apply for the 88.45168 right share at a par value of Rs. 100 per share.

As per the directive of Nepal Insurance Authority, life insurance companies are required to meet the minimum paid-up capital of Rs. 500 crores.

As of Ashad’s end, 2080 BS, LICN has a paid-up capital of Rs. 265.32 crores. Hence, the company will issue right shares that amounts to Rs. 234.68 crores.

The company has appointed Nepal SBI Merchant Banking Limited as the issue and sales manager for the right issuance.


 

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