Trading of Securities For Lumbini General Insurance (LGIL) and Sagarmatha Insurance (SIC) Released After 6 Months

The share trading of Lumbini General Insurance Limited (LGIL) and Sagarmatha Insurance Company Limited (SIC) shareholders, excluding the basic shareholders, is released under Section 13 (1) of the Merger and Acquisition Guideline, 2079.

The secondary market trading of securities for SIC and LGIL had been halted from 13th July 2022 as both companies decided to go on a merger with each other. The Board of Directors meeting of both companies approved the draft Memorandum of Understanding (MoU) regarding the merger and the MoU was signed on 30 Ashad, 2079.

Since the Insurance Regulatory Committee issued a directive to increase the capital within a year, insurance companies have started merging up. The committee has set a minimum capital of Rs 2.5 Arba for non-life insurance companies. Further stating that this limit should be reached by Chaitra 2079.

At present, the share capital of SIC and LGIL is Rs. 1.33 Arba and Rs. 1.31 Arba. Likewise, the last trading price (LTP) as of 13th July 2022 is Rs. 870 and Rs. 382, respectively.