Insurance Companies Await Final Approval for Right Shares Issuance Worth Over Rs 6.3 Billion

Kathmandu – The Securities Board of Nepal (SEBON) is in the final stages of approving the rights issuance of several insurance companies which is worth over Rs 6.3 billion. As per the Nepal Insurance Authority’s directive to increase paid-up capital, seven insurance companies are currently awaiting SEBON’s approval to issue rights shares.

The companies in the pipeline include Sun Nepal Life Insurance, Prabhu Mahalakshmi Life Insurance, Asian Life Insurance, Nepal Insurance, United Ajod Insurance, Sanima GIC Insurance, and Prabhu Insurance. Among them, three are life insurance companies, while the remaining four operate in the non-life insurance sector.

Sun Nepal Life Insurance is set to issue rights shares at a ratio of 1:0.27, amounting to Rs 1.47 billion, with Citizen Capital as its issue manager. Asian Life Insurance plans to issue Rs 1.42 billion worth of rights shares at a 1:0.42 ratio, managed by Muktinath Capital. Similarly, Prabhu Mahalakshmi Life Insurance is issuing rights at a 1:0.17 ratio, worth Rs 730 million, under the management of Siddhartha Capital.

Among the non-life insurers, Nepal Insurance is set to issue rights at a 10:4 ratio, totaling Rs 657.6 million, with NIMB Ace Capital overseeing the process. Prabhu Insurance is bringing rights shares at a 1:0.50156 ratio, amounting to Rs 835 million, with NIC Asia Capital as its issue manager. Sanima GIC Insurance is issuing rights at a 10:2.5 ratio, worth Rs 500 million, with Citizen Capital handling the sale. Meanwhile, United Ajod Insurance will issue rights at a 1:0.15 ratio, totaling Rs 315 million, with Lakshmi Sunrise Capital as the sales manager.

These companies have already completed all necessary procedures and are waiting for the final approval from the regulatory board. Niranjan Ghimire, spokesperson for SEBON has confirmed that the approval process is in its final stage.