United Ajod Insurance Rights Book Close Notice
26th February 2026, Kathmandu
The secondary market in Nepal is witnessing significant activity as the United Ajod Insurance Rights update confirms that today is the absolute final deadline for investors to secure their eligibility for the company forthcoming rights share issuance. United Ajod Insurance Limited, a prominent player in the non life insurance sector formed through the successful merger of United Insurance and Ajod Insurance, has officially announced the closure of its shareholder register on March 1, 2026 (Falgun 17, 2082). This strategic move is part of the company broader plan to meet the increased paid up capital requirements mandated by the Nepal Insurance Authority. For investors, this book closure notice serves as a critical junction; only those whose names are recorded in the electronic records of CDS and Clearing Limited by the end of today trading session will be entitled to participate in the upcoming capital raise.
United Ajod Insurance Rights
The technical eligibility criteria for the United Ajod Insurance Rights are governed by the T plus 2 settlement cycle of the Nepal Stock Exchange. This means that any investor who has purchased shares today or previously and has successfully completed the settlement process will be recognized as an existing shareholder. Under the prevailing capital market rules, the book closure on Falgun 17 effectively freezes the list of beneficiaries. Investors who purchase the stock from tomorrow onwards will be buying it on an ex rights basis, meaning they will not receive the entitlement to apply for the new shares. The book closure mechanism is a standard regulatory practice designed to ensure that corporate benefits are distributed accurately and that there is no ambiguity regarding who qualifies for the rights offering during the subscription period.
The scale of this rights issuance is specifically calibrated to strengthen the company financial foundation. United Ajod Insurance Limited plans to issue rights shares in a ratio of 100 to 10. In practical terms, this means that for every 100 units of shares currently held by a shareholder, they will be granted the right to purchase 10 additional units at the par value of 100 rupees. The company intends to issue a total of 2,310,000 units of rights shares, which will result in a fresh capital infusion of 23 crore 10 lakh rupees. This increase in paid up capital is essential for the company to enhance its risk carrying capacity and to comply with the solvency margin requirements that ensure the long term protection of policyholders.
The regulatory pathway for this issuance reached a major milestone when the Securities Board of Nepal (SEBON) granted its formal approval on February 9, 2026 (Magh 27, 2082). SEBON review process involves a comprehensive check of the company financial disclosures, its utilization plan for the new capital, and its compliance with investor protection norms. The approval signals to the market that United Ajod Insurance has met the necessary transparency standards. Furthermore, the appointment of Laxmi Sunrise Capital Limited as the issue and sales manager ensures that the application process will be managed professionally. Laxmi Sunrise Capital will oversee the collection of applications through the C ASBA system, manage the allotment process, and coordinate with the stock exchange for the eventual listing of the new shares.
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From a strategic perspective, the capital raised through this rights issue will be deployed to support the company expansion in the competitive non life insurance market of Nepal. Since the merger, United Ajod has been working on integrating its branch network and digitizing its underwriting processes. The new capital will allow the firm to take on larger risks in sectors such as hydropower, aviation, and large scale infrastructure projects, which require substantial capital backing. For existing shareholders, the rights issue provides an opportunity to maintain their proportional ownership in the company without the dilution that typically occurs during a general public offering. Because the shares are offered at 100 rupees, which is significantly lower than the current market price on NEPSE, it also offers a potential value addition for long term investors.
Investor considerations during this period are multifaceted. Shareholders must evaluate their current portfolio and decide if they have the liquidity to subscribe to their full entitlement. Those who do not wish to participate should be aware that their percentage holding in the company will decrease once the new shares are issued. Additionally, the market price of United Ajod Insurance is expected to undergo a price adjustment on the first trading day after the book closure. This adjustment reflects the addition of new shares at a lower price into the total market capitalization. Smart investors often look at the company combined ratio and its claim settlement efficiency as key indicators of whether the additional capital will lead to higher dividends and better stock performance in the future.
The broader impact of this rights issuance on the insurance sector is also noteworthy. Many insurance companies in Nepal are currently in a phase of capital consolidation following the merger wave encouraged by the regulator. United Ajod proactive move to close its books and proceed with the issuance indicates its readiness to move into the next phase of growth. As the company strengthens its equity base, it also gains more leverage in negotiating reinsurance treaties with international partners, which can lead to better margins and more competitive premium rates for customers. This virtuous cycle of capital strength and operational efficiency is what the management aims to achieve through this 23.10 crore rupee expansion plan.
In conclusion, the United Ajod Insurance Rights update marks a decisive moment for the company and its thousands of shareholders. With the book closure set for Falgun 17, today represents the final opportunity for new investors to enter the register and for existing ones to finalize their positions. The 100 to 10 ratio provides a structured and equitable way for the company to raise the 23.10 crore rupees it needs to fortify its financial standing. Under the professional management of Laxmi Sunrise Capital and with the oversight of SEBON, the issuance is poised to proceed smoothly. As the insurance market in Nepal continues to evolve toward higher standards of governance and capital adequacy, initiatives like this one ensure that United Ajod Insurance remains a resilient and competitive force in the year 2082 and beyond.
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