92,893 units right shares of Neco Insurance unclaimed by its shareholders; to be auctioned soon

Neco Insurance Limited (NIL) had issued 32,40,436.32 units right shares in the ratio 1:1 to its existing shareholders from Falgun 3 to Chaitra 7, 2073. Out of the total floated shares, only 31,47,543 units shares were subscribed and were allotted to 4,873 of its shareholders on Baisakh 6, 2074. The remaining 92,893.32 units shares will now be auctioned. As per an official of NMB Capital Limited, the issue manager for the right share of Neco Insurance, 6,163.73 units promoter shares were not claimed by its promoters. Similarly, 86,729.53 units ordinary shares were not claimed by its ordinary shareholders. These unclaimed shares will be auctioned soon with a minimum bid price of Rs 100 per share. NMB Capital itself will be managing the auction. NIL had earned net profit of Rs 7.33 crore up to the second quarter of the FY 2073/74. Its paid up capital after 100% right share capitalization will reach Rs 71.28 crore. As per Insurance Board’s 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, NIL will need to issue a further capital hike of Rs 28.71 crore (around 41%).