Gurans Life Insurance required to take approval for issuance of 50% right shares again; Company lags behind by 210% to meet minimum paid-up capital

Gurans Life Insurance Company has recently announced 8.421% dividend for the FY 2073/74. The dividend includes 8% bonus shares worth Rs 4.75 crore. The proposed bonus share will raise the paid-up capital of the company from Rs 59.40 crore to Rs 64.15 crore

Earlier, the life insurance company had received approval from SEBON for issuing 50% right shares on April 2017. However, it has not been able to issue the right shares to date.

As per the provision mentioned in Section 44 of Securities Registration and Issue Regulation 2073, a company should float the shares within 2 months of receiving final approval from SEBON.

When inquired regarding the matter with Mr. Niranjaya Ghimire of SEBON, he replied that the company will again have to apply for approval from SEBON as the time limit has already passed.

Had GLICL issued the right shares within the time limit, its current paid-up capital would stand at Rs 89.1 crore and with the recently announced 8% bonus shares, the paid-up capital would reach Rs 93.85 crore.

Now the company needs Rs 1.35 arba to meet the minimum paid-up capital of Rs 2 arba which is about 210.44%. It should be seen how the life insurance company manages to achieve the minimum paid-up capital.