NLG Insurance Closing Issue of 62.56 Percent Right Share on Poush 16
December 31, 2024 | Investopaper
NLG Insurance Company Limited (NLG) is currently issuing the right shares to the shareholders. The company is floating the right shares in the ratio 1:0.6256. This means that the shareholders with 100 shares can apply for the additional 62.56 shares.
The right offering is open from Mangsir 11, 2081 BS and will close on Poush 16, 2081 BS. Earlier, if fully subscribed, the right issue was set to close on Poush 1, 2081 BS. However, due to under-subscription until that period, the deadline for application was extended.
For this purpose, the company had announced the book closure date on Karthik 27, 2081 BS. Therefore, the investors holding/purchasing the shares of NLG until Karthik 26, 2081 BS will be eligible to purchase the right shares.
Securities Board of Nepal (SEBON) gave permission to the company on Ashwin 14, 2081 BS. The company had submitted an application to the board on Karthik 2, 2080 BS seeking approval for the right issuance. Only after the approval from the regulatory body SEBON, the company can issue the shares to the public.
Earlier, the insurance company had planned to issue the right shares in the ratio 1:0.66. However, after including the 5.5 percent bonus share approved from the 18th annual general meeting, the company had decided to reduce the right share ratio.
At present, NLG has a paid up capital of Rs. 153.95 crores (after inclusion of 5.50 percent bonus shares). 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. 250.26 crores.
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.
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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