Nepal Insurance to Issue 40 Percent Right Share | Submits Application to SEBON
July 22, 2024 | Investopaper
Nepal Insurance Company Limited (NICL) is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.4. This means that the shareholders with 100 shares can apply for the additional 40 shares.
For this purpose, NICL has submitted the application to the Securities Board of Nepal (SEBON) on Ashad 24, 2081 BS. Only after the approval from the regulatory body SEBON, the company can issue the right shares.
The company has already approved the agenda of right issuance from its Special General Meeting (SGM) held on Jestha 4, 2081 BS. After the approval from its SGM, the company will begin the procedures for right offering
At present, Nepal Insurance has a paid up capital of Rs. 164.42 crores. Hence, the company has plans to sell right shares worth Rs. 65.76 crores. After the right issue, the paid-up capital will reach Rs. 230.19 crores.
As per the direction of Nepal Insurance Authority, the non-life insurance companies are required to meet the minimum capital of Rs. 250 crores. Hence, Nepal Insurance has opted for the right issue in order to reach the capital requirement.
NIMB Ace Capital Limited is the issue and sales manager for the right offering.
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