Sun Nepal Life Insurance to Issue Right Shares in the ratio of 1:0.27, Appoints Nepal SBI as Issue Manager
![post-image](https://cdn.arthakendra.com/images/2024/01/31/010547-right-share.png)
Sun Nepal Life Insurance Limited (SNLI) has announced its intention to issue right shares to its shareholders, aiming to meet the regulatory capital requirements set by the Nepal Insurance Authority. The company has appointed Nepal SBI Merchant Banking Limited as the issue manager for this process.
Under the proposed plan, SNLI will issue right shares in the ratio of 1:0.27, allowing shareholders to apply for an additional 27 shares for every 100 shares held. With a paid-up capital of Rs. 3.20 Arba as of the end of Chaitra 2080 BS, SNLI aims to increase its capital to Rs. 3.96 Arba after a proposed 23.8 percent bonus share issuance.
The company plans to sell 1,06,96,320 right shares, totaling Rs. 106.96 crores. This move is expected to elevate the paid-up capital to Rs. 503.12 crores upon completion of the right issue.
Before proceeding, SNLI is required to submit an application to the Securities Board of Nepal (SEBON) seeking permission to float the right shares.
This strategic decision aligns with the directives of the regulatory body, which mandates life insurance companies to maintain a minimum capital of Rs. 500 crores. By opting for the right issue, Sun Nepal Life Insurance demonstrates its commitment to fulfilling regulatory requirements and strengthening its financial position in the market.