Book closure for 1:1 right shares of NB Insurance on Jestha 4; LTP at Rs 1861

NB Insurance Company Limited (NBIL) had received approval from SEBON to float 100% right shares on April 27, 2017. The insurance company has announced Jestha 4, 2074 as the book closure date. As per the notice published by the non-life insurance company today, the register of their shareholders will remain closed on Jestha 4 for one day. Only those shareholders having shares one trading day ahead of the book closure date i.e. until Jestha 3, 2074 are eligible to apply for 1:1 right shares. NB Insurance will be issuing a total of 2,700,000 units right shares to its existing shareholders, each to be floated at the face value of Rs 100 per unit. Global IME Capital Ltd. has been assigned as the issue manager. It has earned net profit of Rs 3.12 crore in the second quarter of the FY 2073/74. Its paid up capital currently stands at Rs 27 crore. After issuance of 100% right share, its paid up capital will increase to Rs 54 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NBIL will need to issue a further capital hike of Rs 46 crore (around 86%). Its last traded price stands at Rs 1,861 as of yesterday (May 4, 2017).