Nepal Insurance Revises Right Share Ratio Following Bonus Distribution

Kathmandu — Nepal Insurance Company Limited has revised the ratio of its upcoming right share issuance after the distribution of bonus shares led to an increase in its paid-up capital.

Previously, the Nepal Securities Board (SEBON) had approved the company’s proposal to issue 6,576,976.76 units of right shares in a 10:4 ratio, based on a paid-up capital of Rs 1.64 billion. However, following the company’s decision to distribute a 15 percent bonus share, endorsed during its annual general meeting on Chaitra 19 (April 1), the paid-up capital has now risen to Rs 1.89 billion.

In light of this adjustment, and in accordance with SEBON’s directive issued on Jestha 23 (June 6), the company will now issue right shares in a revised ratio of 10:3.4783. Despite the change in ratio, the total value of right shares to be issued remains as originally approved.

The company has scheduled the book closure for Jestha 30 (June 13). Accordingly, only shareholders who are registered with the Nepal Stock Exchange (NEPSE) by Jestha 29 (June 12) will be eligible to apply for the right shares.

Nepal Insurance has yet to finalize the exact date for the right share issuance. NIMB Ace Capital Limited has been appointed as the issue and sales manager for this offering.