Kathmandu; Nepal Insurance Authority has granted in-principle approval to Life Insurance Corporation Nepal Limited (LICN) to issue rights shares. The Authority has given in-principle approval through a letter dated 21 Paush 2079. LICN has already received the nod from the Authority to receive additional FDI from the Life Insurance Corporation India, one of the major promoters of LICN for right shares.
LICN has announced a special general meeting on Magh 3, 2079 to pass the agenda of the right shares issues. According to the company, the meeting will be held at the Lisara reception in Naxal, Kathmandu. In the SGM, the agenda to issue of right shares at a 1:0.88 ratio will be discussed and endorsed by the house. Once the agenda is approved by the SGM, LICN needs to get approval from the Security Exchange Board (SEBON) for the right share issue.
LICN’s current paid-up capital is Rs. 2 billion 653.2 million. From the issue of right shares, the company expects to raise an additional Rs. 1 billion 438.8 million paid-up capital. The company is under an obligation to maintain Rs. 5 billion paid-up capital by the end of Chaitra 2079. Only three and a half months are left to meet the deadline.