Asian Life Insurance Rights Issue Nepal: SEBON Approved Share Offering
10th May 2025, Kathmandu
Asian Life Insurance Company Limited has received the green light from the Securities Board of Nepal (SEBON) to issue rights shares. The approval was granted on Baisakh 26, 2081 (May 9, 2025).
Asian Life Rights Issue Nepal
Rights Shares in 1:0.42 Ratio
The company will issue rights shares at a 1:0.42 ratio. This means every shareholder with 100 shares can apply for 42 more shares. The offering aims to help the company increase its paid-up capital to meet regulatory requirements.
Volume and Value of Rights Issue
Asian Life plans to issue a total of 1,42,79,312.48 rights shares. Each share will be priced at NPR 100, the standard face value. The company expects to raise NPR 1.42 billion through this process. This rights issue represents 42% of the company’s current paid-up capital.
Capital to Reach NPR 5 Billion
At present, Asian Life’s paid-up capital stands at NPR 3.39 billion. After the rights issue, the capital will grow to nearly NPR 5 billion. This amount matches the minimum capital requirement set by the Insurance Board of Nepal for life insurance companies.
Compliance with Regulatory Standards
The Insurance Board has mandated that life insurance firms in Nepal must have a minimum paid-up capital of NPR 5 billion. Asian Life’s decision to issue rights shares ensures it meets this benchmark. It also helps the company improve its financial foundation and prepare for future growth.
Muktinath Capital Appointed as Issue Manager
Asian Life has appointed Muktinath Capital Limited as the issue manager for the rights shares. Muktinath will handle the technical and administrative tasks. This includes processing applications, share allotment, and reporting.
Who Can Apply for the Rights Shares?Only existing shareholders listed before the book closure date can apply for the rights shares. The company will soon announce the book closure date along with the opening and closing dates for applications.
Shareholders will need to submit applications through their Demat account or by visiting designated collection centers during the application period.
Strengthening Financial Position
Issuing rights shares helps Asian Life raise fresh capital from its existing investors. Unlike public offerings, rights shares do not dilute ownership. This approach allows the company to strengthen its balance sheet while retaining shareholder trust.
With increased capital, Asian Life will be able to:
Expand its insurance portfolio
Improve claim-settlement capacity
Launch new products
Invest in digital infrastructure
Boosting Investor and Market Confidence
This move signals strong management intent to comply with regulations and grow responsibly. It also assures policyholders and investors that the company is financially sound. Market experts believe that the move will positively influence the company’s reputation and stock performance.
Moreover, the capital boost could allow Asian Life to compete more effectively with other insurers in Nepal’s growing insurance market.
Asian Life’s Current Market Position
Asian Life Insurance is a long-standing player in Nepal’s insurance sector. It has a wide network of branches and agents. The company serves thousands of policyholders nationwide and is known for its claim settlement and customer service.
Over the years, Asian Life has expanded its reach in both urban and rural markets. It offers a variety of life insurance products tailored to Nepali families and businesses.
Forward Strategy and Outlook
The rights issue is a strategic step toward sustainable growth. It helps the company meet capital requirements and prepare for future challenges. With the capital in place, Asian Life can scale its operations and deliver better services.
The board and management remain committed to responsible governance and transparent financial practices. They have urged all eligible shareholders to participate in the upcoming rights offering.
The company will release more information soon, including how to apply, key deadlines, and procedural guidelines. Investors are advised to stay updated through official notices.
Conclusion
Asian Life Insurance’s rights offering is more than a capital-raising move. It reflects the company’s vision for long-term stability, market leadership, and regulatory compliance. With SEBON’s approval and strong institutional backing, the company is set to reach new milestones in Nepal’s life insurance sector.
For more: Asian Life Rights Issue Nepal
