SEBON approves 100% right share of NB Insurance; paid up to reach Rs 54 crore

Securities Board of Nepal (SEBON) has provided approval to NB Insurance Company Limited (NBIL) for the issuance of 100% right shares. NB Insurance will now be issuing 2,700,000 units right shares to its existing shareholders, each to be floated at the face value of Rs 100 per unit. Global IME Capital Ltd. has been assigned as the issue manager. NB Insurance Company has earned net profit of Rs 3.12 crore in the second quarter of the FY 2073/74. Its paid up capital currently stands at Rs 27 crore. After issuance of 100% right share, its paid up capital will increase to Rs 54 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NBIL will need to issue a further capital hike of Rs 46 crore (around 86%). Its last traded price stands at Rs 1,770 as of yesterday (April 26, 2017).