SEBON Adds 66% Right Shares of NLG Insurance To Its Pipeline

The Securities Exchange Board of Nepal (SEBON) has added the right shares of NLG Insurance Company Limited (NLG) to its pipeline under preliminary review. The application was submitted to the board on Kartik 02, 2080.

The non-life insurance company is looking to issue 66% right shares worth Rs. 96.31 Crores through the issue of 9,631,220.22 (10:6.6) units of right shares to its existing shareholders. However, with the issuance of the proposed right shares, equivalent to Rs. 96.31 Crores, the paid-up capital will only reach Rs. 2.42 Arba, which falls short of the regulatory authority's directive to reach Rs. 2.50 Arba by the end of Ashad, 2080.

To bridge the shortfall, NLG Insurance Company is planning to supplement the remaining amount through the issuance of bonus shares to increase its paid-up capital to Rs. 2.5 Arba.

Laxmi Capital Market Limited is appointed as the issue manager.