Insurance Company follows the step of commercial bank! Beema Samiti is planning to bring Everest Insurance’s promoter shares in secondary market

Everest Insurance Company’s promoter shares could be now available in NEPSE to trade. “The decision is yet to be taken by Beema Samiti. However, Beema Samiti is in the perception that these shares should be taken in the secondary market for the ease to trade for shareholders of these promoter shares. The shares have been held by many shareholders in less volume. So, Beema Samiti is in the planning phase regarding this issue”, says deputy director Sambharaj Lamichhane.

Previously, many promoters entered the company through right shares. These promoters claim even ten units of promoter shares. These promoter shareholders are also facing a tough time to easily trade their shares in the secondary market. So, a model is on discussion to bring in promoter shares in secondary market for the convenience of such promoters.   

In general, companies have specified names who resemble the promoter panel of a company. However, in case of Everest Insurance, ordinary shareholders were converted into promoter shares through right shares, increasing the number of promoter shares. Beema Samiti plans to trade EIC’s promoter shares in the similar way in which promoter shares of NABIL and Nepal Investment Bank were traded.

EIC had issued 105% right shares to establish promoter shareholding to 51% in the company. After all the remaining shares have been sold via auction, 1,403,325 units rights shares of the company was listed by Nepal Stock Exchange (NEPSE) on 26^th February, 2019.

The current paid-up capital of the company stands at Rs 27.39 crore after adjustment of 105% right shares. The company is also set to issue 300% right shares after which the paid-up capital of the insurance company will reach Rs 1.09 arba.