Only one trading day left to clinch 100% right share of NB Insurance; Book closure tomorrow

NB Insurance Company Limited (NBIL) had received approval from SEBON to float 100% right shares on April 27, 2017. The insurance company has announced tomorrow (Jestha 4, 2074) as the book closure date. The register of their shareholders will remain closed tomorrow (Jestha 4 for one day). Only those shareholders having shares one trading day ahead of the book closure date i.e. today (Jestha 3, 2074) are eligible to apply for 1:1 right shares. NB Insurance will be issuing a total of 2,700,000 units right shares to its existing shareholders, each to be floated at the face value of Rs 100 per unit. Global IME Capital Ltd. has been assigned as the issue manager. It has earned net profit of Rs 3.12 crore in the second quarter of the FY 2073/74. Its paid up capital currently stands at Rs 27 crore. After issuance of 100% right share, its paid up capital will increase to Rs 54 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NBIL will need to issue a further capital hike of Rs 46 crore (around 86%). Its last traded price stands at Rs 1,877 as of yesterday (May 16, 2017).