Asian Life Insurance Proposes To Issue 42% Right Shares After Bonus Shares Adjustment to Address Capital Requirement

Asian Life Insurance Company Limited (ALICL) has made a decision following the deliberations of its Board of Directors meeting held on Friday, Magh 19. The company has resolved to issue 42% right shares after adjusting for the allocation of 7.75% bonus shares from the existing paid-up capital of Rs. 3.15 Arba. This adjustment will result in an enhanced paid-up capital, reaching Rs. 3.39 Crores after incorporating the bonus shares.

In the 188th board meeting convened on Magh 12, ALICL's directors proposed the distribution of 7.75% bonus shares valued at Rs. 24.45 crores. Additionally, a 0.4078% cash dividend, earmarked for tax purposes, will be disbursed, amounting to slightly over Rs. 1.28 crores.

Despite the issuance of bonus shares, the company anticipates a capital deficit of Rs. 1.61 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, ALICL has proposed the issuance of 42% right shares after adjusting the bonus shares aimed at fulfilling the Rs. 5 Arba capital requirement set by the NIA.

It's imperative to note that the issuance of bonus shares and the subsequent proposal for 42% right shares are subject to regulatory approval from the NIA and the forthcoming Annual General Meeting (AGM), the details of which, including the book closure date, are yet to be announced.