NLG Insurance Company Granted Permission for 66% Right Shares by Nepal Insurance Authority

Nepal Insurance Authority (NIA) has granted permission to NLG Insurance Company (NLG) for the issuance of 1:0.66 ratio rights shares. According to spokesperson Mr. Raju Raman Paudel, the board meeting held last Friday approved the issuance of 66% right shares to NLG Insurance for capitalization.

With the approval from the regulatory authority, the company will now seek permission from the Securities Board of Nepal (SEBON) for the rights issuance. Once SEBON grants permission, the company will only distribute the rightful shares to its shareholders.

The company currently has a paid-up capital of Rs. 1.45 Arba. However, with the issuance of the proposed right shares, equivalent to Rs. 96.31 Crores, the paid-up capital will only reach Rs. 2.42 Arba, which falls short of the regulatory authority's directive to reach Rs. 2.50 Arba by the end of Ashad.

To bridge the shortfall, NLG Insurance Company is planning to supplement the remaining amount through the issuance of bonus shares to increase its paid-up capital to Rs. 2.5 Arba.