Kathmandu: Reliable Nepal Life Insurance has urged the promoter shareholders to make more investment for paid-up capital. The company has issued a notice on Friday urging the founding shareholders to add additional capital equal to 100 percent of existing paid-up capital.
The fourth annual general meeting (AGM) held on June 8 has passed the agenda to call all the promotors to invest additional capital at 1: 1 ration. The Insurance Board has given nod to raise additional capital from the promoters.
The promoter shareholders are supposed to deposit the additional capital amount by August 22.
The company’s current paid-up capital is Rs 1.40 billion. The paid up capital of the company will reach Rs 2.80 billion once the promotors pour additional investment.
After collection of additional capital from the promoters, 40 percent of the new paid-up capital will, i.e. Rs 1.20 billion will be raised through IPO.
As per the fresh provision issued by the Insurance Board, a life insurance company must have Rs. 5 billion paid-up capital within the end of current year. Only, nine months left for the deadline.