Neco Insurance Limited (NIL) has announced the issuance of 25% rights shares to its existing shareholders. This is an exciting opportunity for investors to increase their stake in one of Nepal’s leading insurance companies. The application process for these shares will run from Falgun 8 to Falgun 28, 2081 (February 20 to March 11, 2025). Here’s everything you need to know about this rights share issue.
What Are Rights Shares?
Rights shares are additional shares offered to existing shareholders at a specific ratio. In this case, Neco Insurance is offering 1 new share for every 4 shares held by its shareholders. This means if you own 100 shares, you can apply for 25 additional shares.
Key Details of the Rights Share Issue
Share Issuance Details
- Total Shares Issued: 50,30,901.55 units
- Face Value per Share: Rs. 100
- Total Issue Amount: Rs. 50.30 crore
- Current Paid-Up Capital: Rs. 2.01 Arba
- Post-Issue Paid-Up Capital: Rs. 2.51 Arba
Eligibility
Only shareholders who held shares before Magh 17, 2081 (January 31, 2025) are eligible to apply for the rights shares.
How to Apply for Rights Shares?
Application Process
- Get the Application Form: Forms are available through the issue manager, Sanima Capital Limited, or via electronic platforms.
- Fill out the Form: Provide your details, including your name, Demat account number, and the number of shares you wish to apply for.
- Submit the Form: Submit the completed form and the payment by Falgun 28, 2081 (March 11, 2025).
Payment Details
- Payment Mode: You can pay through bank deposits or electronic payment systems like Connect IPS.
- Amount: Rs. 100 per share (100% payment required at the time of application).
Why Invest in Neco Insurance?
Strong Financial Position
Neco Insurance has a solid financial track record and a strong reputation in Nepal’s insurance sector. The company’s paid-up capital will increase to Rs. 2.51 Arba after this rights share issue, further strengthening its financial base.
Credit Rating
Neco Insurance has received a credit rating of IRN A+ (Is) from Infomerics Credit Rating Nepal Limited. This rating indicates that the company has a low credit risk and is capable of meeting its financial obligations on time.
Important Dates
- Application Start Date: Falgun 8, 2081 (February 20, 2025)
- Application Deadline: Falgun 28, 2081 (March 11, 2025)
- Book Closure Date: Magh 17, 2081 (January 31, 2025)
Key Points to Remember
- Eligibility: Only shareholders registered before Magh 17, 2081 can apply.
- Ratio: 1 new share for every 4 existing shares.
- Payment: Full payment of Rs. 100 per share is required at the time of application.
- Credit Rating: Neco Insurance has a strong credit rating of IRN A+ (Is), ensuring low risk for investors.
Conclusion
The rights share issue by Neco Insurance Limited is a fantastic opportunity for existing shareholders to increase their investment in a reliable and growing company. With a strong financial position and a low-risk credit rating, Neco Insurance is a safe and promising investment.