Prabhu Mahalaxmi Life Insurance to Issue 17 Percent Right Share | Submits Application to SEBON
March 13, 2024 | Investopaper
Prabhu Mahalaxmi Life Insurance Limited is planning to sell right shares to the shareholders. For this purpose, the company has submitted the application to the Securities Board of Nepal (SEBON) on Falgun 22, 2080 BS.
The company has decided to float the right shares in the ratio 1:0.17. This means that the shareholders with 100 shares can apply for the additional 17 shares.
As of Poush’s end 2080 BS, Prabhu Mahalaxmi Life Insurance has a paid up capital of Rs. 4.29 Arba. Hence, the company has plans to sell 73,03,200 right shares worth Rs. 73.06 crores. After the right issue, the paid-up capital will reach Rs. 502.63 crores.
If approved by the the regulatory board, the company will issue the right shares to the shareholders.
As per the direction of Nepal Insurance Authority, the regulatory body, the life insurance companies are required to meet the minimum capital of Rs. 500 crores. Hence, Prabhu Mahalaxmi Life Insurance has opted for the right issue in order to reach the capital requirement.
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