Neco Insurance (NIL) Receives Approval from NIA to Issue 25% Right Shares; Calls SGM on Ashwin 19

Neco Insurance Limited (NIL) has called its Special General Meeting (SGM) on 19th Ashwin, 2080. The meeting will be held in Lisara Receptions, Naxal, Kathmandu, starting at 11 a.m. that day.

The company proposed a 1: 0.25 ratio rights offering (25%) on the paid-up capital of Rs. 2.01 Arba which will be issued only after the approval by SEBON. The company received approval for right shares issuance from the Nepa Insurance Authority (NIA) on Bhadra 29, 2080. After the issuance of 25% right shares, the paid-up capital will increase to Rs. 2.51 Arba which will meet the regulatory authority's directive to reach Rs. 2.50 Arba.

The non-life insurance companies were urged by the Insurance Board to raise their paid-up capital to Rs. 2.5 Arba by the end of Chaitra 2079 which was later decided to give insurance companies an additional three months i.e. end of Ashad to raise their capital. 

Since the capital of the company will increase after the issuance of the right shares, the meeting will also pass the resolution to amend the necessary sections of the Articles of Association accordingly and give full authority to the BoDs to carry out the necessary work related to amendments as guided by the regulatory board.

Ashwin 10 is the book closure date. Thus, shareholders maintained before that day are eligible to attend this meeting.