LIC Nepal and NLG Insurance are Approaching the Nepal Securities Board to Issue Rights Shares

Kathmandu : LIC Nepal and NLG Insurance are going to approach the Nepal Securities Board to issue rights shares. Both LIC Nepal and NLG have received approval from Nepal Insurance Authority to issue rights shares. Both these companies have received approval from the regulatory body of insurance companies and the rating has been completed after that they are making final preparations to send to the board. They are going to submit an application to the board this week (last week of September 2023) for the issue of rights shares.

The Authority has also approved Life Insurance Corporation Nepal LIC Nepal to issue rights shares. The authority has allowed the company to issue 86 percent of the paid-up capital as Rights share.Currently, the paid-up capital of LIC Nepal is 2 billion 653.2 million rupees. After 86% rights issue, the company’s paid-up capital will reach around 5 billion i.e 4 billion 935.2 million rupees. Which is slightly less than the minimum capital prescribed by the authority.

The Nepal Insurance Authority has set a minimum paid-up capital of life insurance companies of Rs.5 billion and non-life insurance companies of Rs.2.5 billion. The rest will be paid by the company through bonus shares.NLG Insurance is going to issue 66 % right shares. It is said that the company will issue right shares at the rate of 6.6 shares in the ratio of 10 shares at the rate of 100 rupees per share, with a current capital of 1 billion 459 million rupees.

The company has also appointed a sales manager. These company are going to apply to the board for the final phase of right share.