Lumbini General Insurance to auction unsold 42,815 units ordinary right shares from Bhadra 28; LTP at Rs 980

Lumbini General Insurance Company Limited (LGIL) is going to auction its unclaimed ordinary right shares from Bhadra 28, 2074. The insurance company is selling 42,815 units ordinary shares after the right shares issued from Asadh 30, 2074 to Bhadra 1, 2074 were unsubscribed by its shareholders. LGIL had floated 39,00,000 units right shares and around 1.09% were unclaimed. CBIL Capital Limited is the issue manager for the auction. The auction will last till Asoj 6, 2074 and the bids will be opened to conclude the auction same day at 4 PM. Interested bidders must apply for a minimum of 100 units. The insurance company has urged interested bidders to submit bids by 1:30 PM on Asoj 6. The insurance company has urged all bidders to deposit the bid amount in account number 0010000511CC maintained in the name of CBIL Capital Limited at Citizens Bank International Limited. Applicants can also apply through a Good for Payment cheque made in the name of CBIL Capital Limited. After the adjustment of the rights shares, the non-life insurance company’s total paid-up capital will reach Rs 78 crore from existing Rs 39 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, LGIL will need to increase its capital by further Rs 22 crore (around 28.20%). Its last traded price (LTP) stood at Rs 980 as on September 6, 2017.