General Insurance Company (GIC) Proposes To Issue 30% Right Shares

Mon, May 23, 2022 11:49 AM on Latest, Dividend, Bonus & Rights,

The meeting of the board of directors held on 6 Jestha, 2079 at 5:30 p.m of General Insurance Company Nepal Limited (GIC) has decided to issue 30% right shares upon getting approval from the Beema Samiti(Insurance Board). 

The Insurance Regulatory Authority Committee issued a directive to increase the capital within a year. In fact, the committee has set a minimum capital of Rs 2.5 Arba for non-life insurance companies. Further stating that this limit should be reached by Chaitra 2079. The insurance committee has also instructed not to give priority to the issue of right shares for capital increase. It is visible that the committee has attempted to lessen the range by forcing the Insurance companies to head for the merger, directing them to elevate the desired capital without issuing the right shares.

Due to this notice of the Insurance Board (IB), many insurance companies have started merging up. Previously, Everest and Himalayan General Life Insurance Company had merged and another three life insurance companies; Union Life, Gurans Life, and Prime Life Insurance sign a historic merger deal.

Keeping in view the provision made by the IB in this matter, the meeting of the board of directors held of General Insurance Company Nepal Limited decided to issue 30% right shares. The current paid-up capital of the company based on its 3rd Quarterly Report for FY 2078/79 is Rs. 1 Arba.