Neco Insurance announces 50% right share; Paid up capital to reach 1.06 arba

Neco Insurance Company Limited (NIL) has decided to issue 2:1 right shares to its shareholders. As per the notice published in Nepal Stock Exchange today, the BOD Meeting of the company held on Shrawan 4, 2074 has decided to issue Rights shares in the proportion of 2:1 to their shareholders. However, the decision is subjected to approval from insurance board and its upcoming Annual General Meeting (AGM). Earlier, NIL had issued 20% bonus share and 100% right shares to its shareholders. Neco Insurance had earned Rs 12.88 crore in the third quarter of the fiscal year 2073/74. After issuance of 20% bonus and 100% right share, its paid up capital has reached Rs 71.28 crore and after issuance of 50% right share its capital will reach Rs 1.06 arba. As per the new guideline, non-life insurance companies should have a minimum paid up capital of Rs 1 arba by the end of FY 2074/75 and NIL will meet the requirement after issuance of right share.