Nepal Insurance has received approval from the Securities Board of Nepal (SEBON) to issue rights shares equivalent to 40 percent of its current paid-up capital. The approval was granted on Wednesday, paving the way for the company to raise additional capital in line with regulatory requirements.
With a current paid-up capital of Rs 1.89 billion, the company will issue 6,576,937.76 units of rights shares at a face value of Rs 100 per share. This rights offering will raise approximately Rs 657.69 million.
NIMB Ace Capital has been appointed as the issue and sales manager for the transaction.
The rights issue is part of Nepal Insurance’s effort to comply with the Insurance Board of Nepal’s directive, which mandates that all non-life insurance companies maintain a minimum paid-up capital of Rs 2.5 billion. The capital infusion through the rights shares will help the insurer bridge the existing shortfall and strengthen its financial base.
