Sun Nepal Life Insurance to Issue 27 Percent Right Share | Application Submitted to SEBON
July 22, 2024 | Investopaper
Sun Nepal Life Insurance Limited (SNLI) is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.27. This means that the shareholders with 100 shares can apply for the additional 27 shares.
For this purpose, the insurance company has submitted the application to the Securities Board of Nepal (SEBON) on Ashad 23, 2081 BS. Only after the approval from the regulatory body SEBON, the company can issue the right shares.
As of Chaitra’s end 2080 BS, Sun Nepal Life Insurance has a paid up capital of Rs. 3.20 Arba. After the proposed 23.8 percent bonus share, the capital will increase to 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.
The company has appointed Nepal SBI Merchant Banking Limited as 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.
Recommended:
