Neco Insurance Limited Closing Issue of 1: 0.25 Right Shares from Today

Neco Insurance Limited (NECO) is closing the issue of a 1:0.25 ratio of right shares to its shareholders at a par value of Rs. 100 from today i.e., on 14th Chaitra, 2081. The issue opened on 8th Falgun, 2081.

The company will be issuing 25% right shares worth Rs. 50.30 crore through the issue of 50,30,901.55 (1: 0.25) units of right shares to its existing shareholders. The current paid-up capital of Rs. 2.01 Arba. After the adjustment of the proposed right share, i.e., 50,30,901.55 units, the company's paid-up capital will increase to Rs. 2.51 Arba.

According to the CDSC, a total of 25,684 applicants applied for 21,57,493 units of right shares, equivalent to Rs. 21.57 Crore. Despite this substantial interest from the applicants, the issue was only subscribed to 42.88% of its total offering.

Sanima Capital Limited has been appointed the issue manager for this rights issue.

The book closure date was 17th Magh. Thus, shareholders maintained before that day are eligible for the rights offering.