Information to the promoter shareholders of Reliable Nepal Life Insurance Limited (RENLICL) regarding the deposit of additional investment amount per share.
As per the directive of the Insurance Committee regarding the increase in the capital of the company, the fourth annual general meeting of the company held on Jestha 25 decided to call for 100% amount from the existing promoter shareholders.
The existing share capital of RENLICL is Rs 1.40 Arba, after the collection of the same amount from the promoters, the total paid up capital of company will stand at Rs 2.80 Arba.
Earlier, Beema Samiti had decided to raise the minimum bar on paid-up capital of insurance companies. Now, insurance companies can issue bonus shares, right shares, an FPO, or take the merger and acquisition route in order to meet the revised capital structure. This is one of the reason why RENLICL is collecting additional amount.
In order to meet the capital requirements set by Beema Samiti, Life insurance companies need to reach capital of Rs. 5 Arba while non-life insurance company should have a minimum capital of Rs. 2.5 Arba by the end of Chaitra 2079.
Earlier, the Insurance Board in accordance with SEBON guidelines had given license/approval to 10 life insurance to issue IPO shares in order to raise the paid up capital. The list includes;
- Citizen Life Insurance
- Jyoti Life Insurance
- Union Life Insurance
- Reliance Life Insurance
- Sun Nepal Life Insurance
- IME Life Insurance
- Sanima Life Insurance
- Mahalaxmi Life Insurance
- Reliable Life Insurance
- Prabhu Life Insurance
Out of the ten insurance companies, only five insurance companies have issued IPO as of now. The remaining five viz; Reliable Life Insurance, Citizen Life Insurance, Sun Nepal Life Insurance, IME Life Insurance and Mahalaxmi Life Insurance are yet to issue IPO shares.