LIC India To Invest Rs 129.072 Crore In Rights Issue of its LIC Nepal

India’s State-owned Life Insurance Corporation of India (LIC) will invest INR 80.67 crore in the proposed rights issue of its joint venture LIC (Nepal) Ltd. LIC India owns a 55 percent stake in LIC (Nepal) - LICN

The proposal for the rights issue was approved during the insurer’s board meeting on Monday. The said proposal approved for investing in the rights issue of LICN worth NPR 129.07 cr approximately subject to the prevalent exchange rate for infusing capital in LIC (Nepal) Ltd.

The current paid-up capital of LIC Nepal stands at Rs. 265.32 Crores. In this LIC India holds 55% i.e. Rs 145.92 crore capital in the company. LIC India board has approved Rs 129 crore right share, which comes out to be 88% of its total holding in the company.

Likewise, after the issuance of 88% right share on LIC Nepal Rs 265.32 crore capital, the paid-up capital of LIC Nepal will come up to Rs. 498.82 crores which will be enough to meet the criteria set by the insurance committee (Beema Samiti) which states that the Life Insurance Companies should enhance their paid-up capital to Rs. 5 Arba by the end of Chaitra 2079.

However, this right share need to be approved by Beema Samiti for the company to take it ahead. 

Meanwhile the price of LIC Nepal has increased 10% today to close at Rs 1549.90 per share. 

Source:    LIC to invest Rs 80.67 crore in rights issue of its Nepal joint venture