NEPSE reverts adjustment of 105% right shares of Everest Insurance Company

Upon repeated complaints and requests from investors, NEPSE has decided to revert the adjustment of EIC 105% right shares, rendering it null.

A group of investors met with NEPSE chief, Mr. Chandra Singh Saud to discuss on the adjustment issue of Everest Insurance Company. The investors had formally requested NEPSE to suspend trading in EIC as the price adjustment after the issue of 105% right shares was not reasonable. The investor group said that since the promoter shares have been adjusted as per the ordinary shares, the adjusted price calculated was unfair and the trading of the same should be suspended.

The investors requested NEPSE to look at the adjustment from investors’ point of view as well. Earlier, Everest Insurance had also requested NEPSE not to adjust promoter right shares with ordinary shares.

Everest Insurance Company had offered 105% right shares for the purpose of establishing promoter shareholding in the company and after the issue, the adjusted price was decided at Rs.563.41. The investors were disappointed with the adjusted price and the adjustment of promoter right shares with ordinary shares.