Sun Nepal Life Insurance Closing 27 Percent Right Issue on Ashad 3
June 17, 2025 | Investopaper
Sun Nepal Life Insurance Limited (SNLI) is currently selling right shares to the shareholders. The company is floating the right shares in the ratio 1:0.27. This means that the shareholders with 100 shares can apply for the additional 27 shares.
The right issue is open from Baisakh 30, 2082 BS.
The right offering was set to close on Ashad 3, 2082 BS. Earlier, the issue was set to close on Jestha 19, 2082 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 Baisakh 5, 2082 BS. Hence, the investors holding/purchasing the shares of SNLI until Baisakh 4, 2082 BS will be eligible to subscribe the right shares.
Securities Board of Nepal (SEBON) has given permission to the company on Chaitra 3, 2081 BS for issuing the right shares. The life insurance company had submitted the application to the board on Ashad 23, 2081 BS. Only after the approval from the regulatory body SEBON, the company can issue the right shares.
As of Poush’s end 2081 BS, Sun Nepal Life Insurance has a paid up capital of Rs. 3.96 Arba. Hence, the company has plans to sell 1,06,96,320 right shares worth Rs. 106.96 crores. After the right issue, the paid-up capital will reach Rs. 503.12 crores.
Nepal SBI Merchant Banking Limited is the issue and sales manager for the right offering.
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, Sun Nepal Life Insurance has opted for the right issue in order to reach the capital requirement.
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