Nepal Reinsurance Company has announced plans to issue 100% rights shares to its existing shareholders. The decision was made in a recent board meeting. The company will seek approval from the Ministry of Finance before proceeding. The proposal will also be presented in the company’s upcoming Annual General Meeting (AGM).
This move comes as part of a broader plan for reinsurance companies in Nepal to meet the minimum paid-up capital requirement of Rs. 20 Arba by the end of Magh (mid-February). To meet this regulatory target, Nepal Reinsurance Company is increasing its capital by issuing rights shares at a 1:1 ratio.
Currently, the company has a paid-up capital of Rs. 13.42 Arba. After the rights issue, this amount will double. The company’s stock is currently trading at around Rs. 1,600 per share in the market.
The rights share issuance is expected to strengthen the company’s capital base and support its long-term growth in Nepal’s expanding insurance and reinsurance market.
