Kathmandu: Beema Samiti has instructed Nepal Life Insurance Company not to split the stock. The company had passed a resolution at its 20th annual general meeting to split the price of Rs 100 per share to Rs 50 per share. But the regulatory authority Samiti, denied the company’s proposal.
The company’s bonus share listing was delayed due to the issue of stock split. For the stock split, the existing MoA and AoA has to be amended. The work was not taken forward as the approval was not received from Samiti. As the proposal of stock split had already been passed by the AGM, the BOD has to withdraw the proposal passed by the AGM citing the denial of the regulator.
According to company sources, BOD has already withdrawn the decision. Along with this, the company has taken forward the process for the bonus share listing.The company has informed that the file has been submitted to the Registrar of Companies and it will be listed in Nepse within the next 15-20 days.
The 20th annual general meeting held on January 11 has already passed 31 percent bonus share of the paid up capital. Before the general meeting, the company’s paid-up capital was Rs 5.49 billion. After the proposed bonus shares of Rs 1.70 billion, the company’s paid-up capital will reach Rs 7.19 billion.
Investors are awaiting for the listing of the same bonus shares. Even though the AGM was held on January 11, the listing could not be done due to the stock split.