Prabhu Insurance to Float 50.15 Percent Right Share | Submits Applicaiton to SEBON
July 10, 2024 | Investopaper
Prabhu Insurance Limited (PRIN) is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.5015. This means that the shareholders with 100 shares can apply for the additional 50.15 shares.
For this purpose, the insurance company has submitted an application to the Securities Board of Nepal (SEBON) on Ashad 19, 2081 BS.
If approved by SEBON, the company will float 83,50,135 shares in the right offering. At a par value of Rs. 100, the right issue amounts to Rs. 83.50 crores.
The company has appointed NIC Asia capital as the issue and sales manager. An agreement has already been inked between the company and NIC Asia Capital on this regard.
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, Prabhu Insurance has opted for the right issue in order to reach the capital requirement.
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