Kathmandu: NLG Insurance Company, during its 449th Board of Directors meeting held on 24th Bhadra, has announced a significant decision to issue rights shares amounting to 62.56% of its current paid-up capital. This move comes in compliance with the directives set by the Nepal Insurance Authority.

Initially, the company’s paid-up capital was NPR 1,45,92,75,790.50, and based on the Insurance Authority’s letter No. 495/079/80 dated 15th Ashad 2080 (June 29, 2023), the company had received approval to issue rights shares at the rate of 66% of its paid-up capital. Following this, the company’s special general meeting on 15th Shrawan 2080 (July 30, 2023) passed a resolution to issue rights shares with a face value of NPR 100 per share. The necessary documentation for the issuance of these shares was submitted to the Securities Board of Nepal (SEBON) on 2nd Kartik 080.

However, before receiving approval for the 66% rights shares, the company conducted its 18th annual general meeting on 3rd Falgun 080, during which it passed a resolution to distribute bonus shares at the rate of 5.50%. This raised the paid-up capital to NPR 1,53,95,35,958.97, and the company promptly informed relevant authorities about the changes.

With the new paid-up capital in place, NLG Insurance has now decided to issue rights shares amounting to 62.56% of the current capital, which will increase the total paid-up capital to NPR 2,50,25,15,701.30. The company stated that the difference between the initially proposed 66% and the revised 62.56% rights issuance is minimal, and thus the earlier decision has been reconsidered.

NLG Insurance will now seek approval from the Nepal Insurance Authority to proceed with the issuance of 62.56% rights shares. Once approval is granted, the decision will be presented for ratification in the company’s upcoming general meeting.