United Ajod Insurance Proposes to Issue Rights Shares in 100:15 Ratio to Meet Regulatory Capital Requirements

United Ajod Insurance Limited (UAIL) has put forth a proposal to address the minimum capital requirement set by the Nepal Insurance Authority (NIA) by issuing 15% right shares.

In its 32nd board meeting convened on Jestha 09, 2081, the company resolved to offer right shares in the ratio of 100:15 (15%). Currently, UAIL boasts a paid-up capital of Rs. 2.1 Arba. However, even with the proposed issuance of right shares amounting to Rs. 31.50 Crores, the paid-up capital would only escalate to Rs. 2.41 Arba, falling short of the regulatory directive stipulating a requirement to reach Rs. 2.50 Arba by the end of Ashad, 2081.

The execution of this proposal hinges upon obtaining approval from both the regulatory authority and the Securities Board of Nepal (SEBON) for the rights issuance. Upon securing permission from SEBON and NIA, the company will proceed with the distribution of rightful shares solely to its shareholders.