October 19, 2023 | Investopaper
Neco Insurance Company Limited (NIL) is planning to sell right shares to the shareholders.
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.
For this purpose, the Special General Meeting (SGM) held on Ashwin 19, 2080 BS has approved the issuance of right shares. The book closure for the SGM was fixed on Ashwin 10, 2080 BS.
Now, after the approval by the general meeting, the insurance company will begin the proceedings for the right offering.
At present, NIL has a paid up capital of Rs. 201.23 crores. Hence, the company has plans to sell right shares worth Rs. 50.30 crores. After the right issue, the paid-up capital will reach Rs. 251.54 crores.
As per the direction of Nepal Insurance Authority, the regulatory body, 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.