More than 10 lakh unit promoter shares to be converted into ordinary shares; Shikhar Insurance’s conversion in full swing

Shikhar Insurance Company Limited (SICL) has urged its promoter shareholders to submit decision (of conversion or non-conversion) regarding the conversion of their promoter shares into ordinary shares.

The insurance company has already decided to convert the share structure of the company from the existing 70:30 into 60:40.The insurance company had previously requested Insurance Board for the conversion of its share structure from 70:30 to 56:44 shares which was rejected by the board. Currently, Insurance Board has given the permission to convert the share structure as 60:40. For which, they will be converting 14.2857% of the promoter shares into ordinary shares.

The insurance company has 1,05,47,921 unit listed shares in the ratio of 70:30. The promoter shares in the ratio would be 73,83,544.7 unit shares.But after the conversion of the shares in the ratio of 60:40, the promoter shares would be 63,28,752.6 units. Hence, 10,54,792.1 unit promoter shares of SICL will be converted into ordinary shareholders bringing a huge number of shares of the insurance company in the secondary market.