NLG Insurance to Float 66 Percent Right Share | Application Submitted to SEBON

October 29, 2023 | Investopaper

NLG Insurance Company Limited (NLG) is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.66. This means that the shareholders with 100 shares can apply for the additional 66 shares.

For this purpose, the company has submitted an application to the Securities Board of Nepal (SEBON) on Karthik 2, 2080 BS. Only after the approval from the regulatory body SEBON, the company can issue the shares to the public.

NLG Insurance has appointed Laxmi Capital Market Limited as the issue and the sales manager. An agreement has been reached between Laxmi Capital and NLG Insurance on this regard.

At present, NLG has a paid up capital of Rs. 145.92 crores. Hence, the company has plans to sell right shares worth Rs. 96.31 crores. After the right issue, the paid-up capital will reach Rs. 242.22 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, NLG Insurance has opted for the right issue in order to reach the capital requirement.


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