Rights Share Issuance of LIC Nepal and NLG Insurance Witness Strong Investor Participation

Kathmandu – Life Insurance Corporation (Nepal) Limited (LIC Nepal) and NLG Insurance Company Limited, two leading financial institutions in the country, have witnessed significant investor participation in their respective rights share offerings.

LIC Nepal

As of December 16, LIC Nepal has received applications worth NPR 343.8 million. According to data from CDS, 9,430 applicants have subscribed for 3,438,043 shares in the ongoing rights issue. The company had opened its rights shares on November 27, offering shares equivalent to 88.45% of its paid-up capital. LIC Nepal is issuing 23.4 million shares at a face value of NPR 100 per share, amounting to NPR 2.34 billion.

With the book closure finalized on October 25, only shareholders on record as of October 24 are eligible to apply. The rights offering will remain open for applications until January 1. The issue is managed by Nepal SBI Merchant Banking Limited, and applications can be submitted through LIC’s branches, ASBA-participating institutions, and online platforms like Mero Share. ICRA Nepal has rated LIC with an ‘ICRANP Issuer Rating A+’, highlighting its robust financial stability. Post-allocation, LIC’s paid-up capital is expected to increase from NPR 2.65 billion to NPR 5 billion.

NLG Insurance

Similarly, NLG Insurance Company Limited’s rights issue, which commenced on November 26, has also garnered considerable interest. The company has received applications worth NPR 216 million, with 15,093 applicants subscribing to 2,160,468 shares as of December 16. NLG is offering 9.63 million shares at a face value of NPR 100, totaling NPR 963.12 million. This issuance accounts for 62.56% of NLG’s existing paid-up capital.

The rights issue is open until December 31 for shareholders recorded as of November 12. Managed by Laxmi Sunrise Capital Limited, applications can be submitted through NLG’s central and regional offices, designated branches of Laxmi Sunrise Bank, and ASBA-participating institutions. Online applications via Mero Share are also available. ICRA Nepal has assigned NLG Insurance a rating of ‘ICRANP Issuer Rating A-’, reflecting sufficient capacity to meet financial obligations.