Kathmandu: The Board of Directors of Prabhu Mahalaxmi Life Insurance held its 16th meeting on 7th Bhadra 2081 at 3:30 PM, during which several significant decisions were made concerning dividend distribution and the rights issue.

Firstly, the company decided to distribute a total dividend of 10.526% from the distributable profit of the fiscal year 2079/80. This includes a 10% bonus share and a 0.526% cash dividend for tax purposes. The proposal will be submitted to the Nepal Insurance Authority for approval and will then be presented at the upcoming Annual General Meeting for final endorsement.

Additionally, Mahalaxmi Life Insurance had initially planned to issue a 17% rights share on its current paid-up capital of NPR 4.296 billion, as approved in the 6th Annual General Meeting held on 29th Poush 2080. This was to meet the minimum paid-up capital requirement of NPR 5 billion set by the Nepal Insurance Authority for life insurance companies. However, due to delays in approval from the Nepal Securities Board and the subsequent increase in paid-up capital after the issuance of the 10% bonus shares, the company has revised its plan. It now intends to issue a rights share of 7%, aligning with the new paid-up capital of NPR 4.7256 billion.

The revised rights issue proposal will be submitted to the Nepal Insurance Authority for approval, and once approved, it will be presented for final approval at the upcoming Annual General Meeting.