Company plans to double paid-up capital to comply with regulator’s NPR 26 arba target.
Nepal Reinsurance Company has announced its decision to issue 100% rights shares in order to meet the paid-up capital target set by the Insurance Board of Nepal (Nepal Beema Pradhikaran).
The decision was made during a board meeting held on Wednesday. The company will seek approval from the Ministry of Finance and present the rights issue proposal in its upcoming Annual General Meeting (AGM).
As of now, the company’s paid-up capital stands at NPR 13.42 arba. The Insurance Board has directed the company to raise its paid-up capital to the required level by the end of Magh 2082.
The rights offering will be issued in a 1:1 ratio to existing shareholders. The move aligns with the company’s long-term strategy to expand operations, strengthen its presence in the international market, and meet the regulator’s capital requirement of more than NPR 26 arba.
To facilitate the rights issue, the company will prepare a special resolution as per Section 56(1) and Section 83(a) of the Companies Act, 2063, and seek shareholder approval during the upcoming AGM.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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