Rights Proposal of IME General Insurance (IGI) and Shikhar Insurance (SICL) Approved by SEBON, Why Did the Regulator Delay the Notice?

Thu, Jan 20, 2022 4:37 PM on Dividend, Bonus & Rights, Latest,

The rights proposal of IME General Insurance Limited (IGI) has been approved by SEBON.

10: 4 ratio rights offering proposal of IME General Insurance Limited (IGI) was in SEBON's pipeline. Now that the regulator has approved the proposal, the insurance company will issue a total of 46,30,344 shares at a par value of Rs. 100 per share. This rights offering will raise over Rs. 46.30 crores for the company.

Global IME Capital has been appointed the issue manager. The application was submitted to SEBON on Bhadra 17. The current paid-up capital of IGI stands Rs 115.75 crore, which after the issuance of the right shares will increase to Rs 162 crore.

As of writing, IGI has an LTP of Rs. 1,217 after a 4.28% gain in today's market session.

Similarly, the rights proposal of Shikhar Insurance Company Ltd (SICL) has also been approved by the regulator.

The 15th and 16th AGM of the company held on Chaitra 09, i.e. March 22 endorsed a 27.769% bonus shares and 1.462% cash dividend for the fiscal year 2076/77. The AGM then also endorsed 30% right shares issuance after capital adjustment post-bonus shares distribution.

Now, the insurance company will issue a total of 52,75,572 shares to its shareholders, which is 30 percent of the existing paid-up capital.

As of writing, SICL has an LTP of Rs. 2,009 after a 4.47% gain in today's market session.

Surprisingly, the rights proposal approval notice was unveiled during the day by some news portals and throughout social media long before SEBON unveiled it on its official website. Investors and the general public deserve to know first-hand information from the regulator. It is imperative that the regulator provide up-to-date and speedy information to the public, and not prioritize a select group of media portals or investors.