Sebon approves to issue 100% Right Share of Neco Insurance; Offer letter by Poush end

Securities Board of Nepal (SEBON) has given final approval to issue 1:1 (100%) right shares of Neco Insurance Company Limited (NIL) today. NMB Capital Limited has been assigned as the issue manager for right share issue. Neco Insurance 20^th AGM held on Chaitra 12, 2072 had approved 1:1 right share i.e. 3,240,436.45 units to its existing shareholders. As per an official of NMB Capital, “Firstly the company will publish its AGM notice and book closure date for the AGM as well as for right share. We will be publishing offer letter for the right share by Poush end.” ‘The right shareholders are not eligible for the bonus share of the company’, added official. Also, Neco Insurance has decided to distribute 20 percent bonus share to its shareholders. The decision is subject to approval from Insurance Board and the company’s upcoming 21^st Annual General Meeting (AGM). NIL had earned net profit of Rs 2.50 crore in the first quarter of the fiscal year 2073/74. Its paid up capital remains at Rs 32.40 crore. After issuance of 20% bonus and 100% right share, its paid up capital will reach to Rs 71.28 crore. Its last traded price stood at Rs 1, 744 as on December 20, 2016. ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed rights issue of Neco Insurance.