Prabhu Mahalaxmi Life Insurance Proposes 17% Right Share Issue to Fulfill NIA's Rs. 5 Arba Capital Requirement

According to the decision of the Board of Directors meeting of Prabhu Mahalaxmi Life Insurance Company Limited, the company has decided to issue 17% right shares.

The meeting of the board of directors held on Poush 01 has decided to issue the 17% right shares on the paid-up capital of Rs. 4,29,60,00,000. Hence, after the issue of 73,03,200 units of right shares, the paid-up capital of the company will increase to Rs. 5.02 Arba. Despite the merger, the life insurance company grappled with a capital deficit of Rs. 70.4 Crores, falling short of the Rs. 5 Arba capital requirement mandated by the Nepal Insurance Authority (NIA) for life insurance companies. Therefore to meet the capital requirement of Rs. 5 Arba the company has now proposed to issue 17% right shares.

However, it is important to note that the issuance of these right shares is contingent upon receiving approvals from both the regulatory bodies, namely the Nepal Insurance Authority (NIA) and the Securities Board of Nepal (SEBON), and subsequent endorsement at the company's upcoming Annual General Meeting (AGM).