Nepal Insurance (NICL), one of the prominent players in the Nepalese insurance sector, is set to raise additional capital through a rights issue. The company has scheduled a special general meeting (SGM) on May 17, 2024, at Nepal Pragya Pratisthan, Kamaladi, Kathmandu, to seek shareholders’ approval for the proposed offering.
The SGM agenda includes a proposal to issue 40% rights shares of NICL’s paid-up capital of Rs 1.64 billion. This move is expected to bolster the insurer’s financial position and pave the way for future growth opportunities within the burgeoning Nepali insurance market.
Furthermore, the meeting will grant authority to the company’s Board of Directors (BOD) to amend its Articles and Memorandum of Association, as well as approve expenses related to corporate social responsibility initiatives.
NICL has set May 9, 2024, as the book closure date, ensuring that shareholders registered in the company’s books as of May 8, 2024, will be eligible to participate in the SGM and exercise their rights to the proposed share issuance.
The rights issue is seen as a strategic step by Nepal Insurance to strengthen its capital base and enhance its competitiveness in the rapidly evolving insurance landscape of Nepal. By expanding its equity, the company aims to solidify its financial position, support future growth plans, and maintain its position as a leading provider of comprehensive insurance solutions.
