Kathmandu: In a move to raise additional paid-up capital, Citizen Life Insurance Company Limited mulls issuing shares at a premium price. The meeting of the Board of Directors(BODs) of the company held on Paush 17, 2079 has announced the date for the 5th annual general meeting with the special agenda of issuing shares at premiums.
The AGM will be held on 15 Magh, 2079 at Chhaya Devi Complex, Thamel. The AGM will discuss and pass the financial reports and annual reports for the financial year 2077-78.
All the life insurers including Citizen Life Insurance have obligation to maintain at least Rs. 5 billion paid-up capital within the next three months i.e. by the end of Chaitra 2079. Citizen Life has Rs. 2 billion 625 million paid-up capital after an additional 50 percent capital injection by the existing promoter shareholders. The company plans to collect Rs. 1 billion 125 million from IPO issues. If the IPO is issued at a premium of Rs.100, the company will collect an additional Rs. 1 billion 125 million. In such a case, the target of Rs. 5 billion can be easily achieved with additional stock dividends.