Sun Nepal Life Insurance Company Proposes 25.0526% Dividend And 27% Right Shares

Sun, Feb 25, 2024 10:04 AM on Dividend, Bonus & Rights, Latest,

Sun Nepal Life Insurance Company Limited (SNLI) has proposed a 25.0526% dividend and 27% right shares for the fiscal year 2079/80.

The 99th Board of Directors meeting on Falgun 11 has decided to distribute a 23.8% bonus share worth Rs.76.16 crores and a 1.2526% cash dividend worth Rs. 4.00 Crore (including tax).

The company has resolved to issue 27% right shares after adjusting for the allocation of 23.8% bonus shares from the existing paid-up capital of Rs. 3.20 Arba. This adjustment will result in an enhanced paid-up capital, reaching Rs. 3.96 Crores after incorporating the bonus shares.

Despite the issuance of bonus shares, the company anticipates a capital deficit of Rs. 1.04 Arba, falling short of the Rs. 5 Arba capital requirement mandated by the Nepal Insurance Authority (NIA) for life insurance companies. In response to this capital shortfall, SNLI has proposed the issuance of 27% right shares after adjusting the bonus shares aimed at fulfilling the Rs. 5 Arba capital requirement set by the NIA.

The dividend is subject to approval from the Nepal Insurance Authority, and the upcoming AGM.

As of writing, SNLI has its last trading day's closing at Rs. 571.00.