Right Shares of Life Insurance Corporation Nepal Added in SEBON Pipeline; Company to Issue 88.45% Right Share

The Securities Exchange Board of Nepal (SEBON) has added the right shares of Life Insurance Corporation Nepal Limited (LICN) to its pipeline under preliminary review.

The life insurance company is looking to issue 88.45% right shares worth Rs. 2.34 Arba through the issue of 2,34,68,000 (1:0.8845) units of right shares to its existing shareholders. The current paid-up capital of the company is Rs. 2.65 Arba. After the adjustment of the proposed right share, the paid-up capital of the company will increase to Rs. 5 Arba as mandated by the Nepal Insurance Authority. 

As of mid-July 2023, LIC India held a 55% stake, Vishal Group 15% and General Public 30%. LICN’s corporate office is in Putalisadak, Kathmandu. As of mid-July 2023, the company had 81 network points (including province offices and corporate office), ~54,000 individual agents (including ~7,600 active agents) and 105 corporate agents spread across the nation for procuring new business and extending after-sales services.

The life insurance company has not proposed any dividend since FY 2076/77 to its shareholders. 

Nepal SBI Merchant Banking is appointed as the issue manager.