Neco Insurance has called for a special general meeting, issuing 25% Right Share

Neco Insurance Limited (NIL) has scheduled its Special General Meeting (SGM) for the 19th of Ashwin, 2080, at Lisara Receptions in Naxal, Kathmandu, starting at 11 a.m. The purpose of this meeting is to discuss a rights offering proposal in a 1:0.25 ratio (25%) on the company's current paid-up capital of Rs. 2.01 Arba, contingent on approval from the Securities Board of Nepal (SEBON). The Nepal Insurance Authority (NIA) granted approval for this right shares issuance on Bhadra 29, 2080.

If approved during the SGM, Neco Insurance aims to raise Rs. 50.30 crores by issuing right shares, increasing the paid-up capital to Rs. 251.53 crores. This move aligns with the directive from the regulatory body, Nepal Insurance Authority, which requires non-life insurance companies to maintain a minimum capital of Rs. 250 crores.

To accommodate the expected capital increase, the SGM will also address amendments to relevant sections of the Articles of Association. The resolution passed during the meeting will grant full authority to the Board of Directors (BoDs) to execute these amendments in line with regulatory guidance.

The book closure date for shareholders eligible to attend the SGM is set for Ashwin 10.