NB Insurance to issue 80% (12 lakh unit) Right Shares from Shrawan 23; LTP stood Rs 87.72

NB Insurance Company Limited (NBIL) will be issuing 10:8 (80%) right shares to its existing shareholders from Shrawan 23, 2073. According to the notice published by the insurance company today, the rights issue will remain open for 35 days before closing on Bhadra 26, 2073. NB Insurance is issuing a total of 12, 00, 000 unit right shares at the face value of Rs 100. The book closure date for 80% right issues has been set for Shrawan 6, 2073. Only the shares registered one day ahead of the book closure date i.e. Shrawan 5, 2073 will be eligible for the right shares. Global IME Capital Limited has been assigned as the issue manager for the right issue. Interested shareholders can collect the application forms from Global IME Capital Limited, Rastriya Naachghar, Jamal, Kathmandu and all branch offices of NB Insurance. After the adjustment of the rights shares, the insurance company total paid-up capital will reach to Rs 27 crore from existing Rs 15 crore. The insurance company has authorized capital of Rs 1 arba. Its public-promoter share structure stands at 80:20 ratio. NBIL had earned a net profit of Rs. 2.20 crore in the third quarter of the current fiscal year. ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue of the insurance company. Its last traded price stood (LTP) at Rs 87.72 as on July 13, 2016.