Kathmandu: The promoters of IME Life Insurance mull to pour additional 140 percent of its paid-up capital through rights shares. Raju Raman Paudel, executive director of the Insurance Board, has informed that the Board has approved its application to increase paid-up capital through right shares.
Its promoters IME Group, Global IME Bank and others will add additional capital of Rs. 1.96 billion, which is 140 percent of the current paid-up capital of Rs. 1.44 billion. After investing in right share, IME Life’s paid-up capital will reach at Rs. 3.36 billion. After raising through promoters equity, it’s management has planned to raise additional capital of Rs. 1.20 billion issuing shares to the general public. After issuing shares to the general public, its paid-up capital will reach Rs. 4.56 billion.
According to the new provisions implemented by the Insurance Board, the life insurance company have to maintain at least Rs. 5 billion paid-up capital by the end of Chaitra 2079. According to this provision, IME Life Insurance is obliged to issue shares to the general public within next 7 months.
Now, Global IME Bank has to sell its shares either from Reliable Life Insurance or IME Life Insurance. According to the ”Insurer’s Promoter Share Purchase and Sales Directives 2077”, an investor can not hold 1 percent or above shares in more than one insurance company with same nature of business. Due to such provision, Global IME Bank cannot have cross holdings on both life insurance companies.
