NLG Insurance Opens Rights Issue for Shareholders

Kathmandu – NLG Insurance Company Limited has officially launched its rights issue, offering 9.63 million units of shares worth approximately Rs 963.1 million at a face value of Rs 100 per share. The rights issue, which represents 62.56% of the company’s current paid-up capital, is now open for application, with a deadline set for December 16.

Shareholders who held NLG Insurance shares as of November 10 are eligible to apply for the rights issue. The company has received a positive rating from ICRA Nepal Limited, which has assigned an ICRANP Issuer Rating of A-minus, indicating a solid ability to meet its financial obligations.

The company’s rights issue is being managed by Laxmi Sunrise Capital Limited, with applications accepted at central and regional offices of NLG Insurance, designated branches of Laxmi Sunrise Bank, and through all ASBA member banks and financial institutions licensed by the Nepal Securities Board. Investors can also apply online via Mero Share.

The Nepal Securities Board approved the issuance of the rights shares on September 27. The decision followed a proposal to issue 66% rights shares based on a paid-up capital of Rs 1.45 billion. After the approval, the company issued a 5.5% bonus share, increasing its paid-up capital to Rs 1.53 billion. To comply with the Insurance Authority’s directive, NLG Insurance aims to increase its paid-up capital to Rs 2.5 billion.