United Ajod Insurance to Issue 1:0.15 Right Share
October 1, 2024 | Investopaper
United Ajod Insurance Company Limited (UAIL) is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.15. This means that the shareholders with 100 shares can apply for the additional 15 shares.
For this purpose, UAIL has submitted an application to the Securities Board of Nepal (SEBON) on Ashwin 4, 2081 BS. Only after the approval from SEBON, the company can sell the shares to the public.
The special general meeting (SGM) of the company held on Jestha 31, 2081 BS had approved the agenda of right issuance.
Earlier, Nepal Insurance Authority, the regulatory body of insurance companies, had given the pre-approval to the company regarding the right offering.
As of Ashad’s end 2081 BS, United Ajod Insurance Company has a paid up capital of Rs. 210 crores. Hence, the company has plans to sell right shares worth Rs. 31.5 crores. After the right issue, the paid-up capital will reach Rs. 241.5 crores.
For the purpose of right offering, the insurance company has appointed Laxmi Sunrise capital as the issue and sales manager. An agreement has been inked between the company and Laxmi Sunrise 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, United Ajod Insurance has opted for the right issue in order to reach the capital requirement.
Recommended:
How to apply IPO/FPO/Right Share through Mero Share?