Neco Insurance to Float 25 Percent Right Share | Book Closure on Magh 18
January 20, 2025 | Investopaper
Neco Insurance Company Limited (NIL) is planning to sell right shares to the shareholders in the ratio 1:0.25. This means that the shareholders with 100 shares can apply for the additional 25 shares.
For this purpose, the company has announced the book closure date on Magh 18, 2081 BS. Therefore, the investors holding/purchasing the shares of NIL unitl Magh 17 will be eligible to subscribe the right shares.
Securities Board of Nepal (SEBON) gave the permission to the insurance company on Poush 9, 2081 BS regarding the right issuance. The company had submitted the application to the board on Chaitra 6, 2080 BS. Only after the approval from the regulatory body SEBON, the company can issue the shares to the public.
The Special General Meeting (SGM) of NIL held on Ashwin 19, 2080 BS has already approved the issuance of right shares.
As of Poush’s end 2081 BS, NIL has a paid up capital of Rs. 201.23 crores. Hence, the company has plans to sell 5,030,901.55 right shares worth Rs. 50.30 crores. After the right issue, the paid-up capital will reach Rs. 251.54 crores.
Sanima Capital Limited is the issue and sales manager for the right offering.
As per the direction of Nepal Insurance Authority, the regulatory body of insurance companies, the non-life insurance companies are required to meet the minimum capital of Rs. 250 crores. Hence, Neco Insurance has opted for the right issue in order to reach the capital requirement.
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