Neco Insurance to Float 25 Percent Right Share | Submits Application to SEBON
March 28, 2024 | Investopaper
Neco Insurance Company Limited (NIL) is planning to sell right shares to the shareholders. For this purpose, the company has submitted the application to the Securities Board of Nepal (SEBON) on Chaitra 6, 2080 BS. Only after the approval from the regulatory body SEBON, the company can issue the shares to the public.
The company has decided to float the right shares in the ratio 1:0.25. This means that the shareholders with 100 shares can apply for the additional 25 shares.
The Special General Meeting (SGM) of NIL held on Ashwin 19, 2080 BS has already approved the issuance of right shares.
At present, 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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