25th August 2025, Kathmandu
Asian Life Insurance Company Limited has officially completed the allotment of its rights shares.
Asian Life Rights Share Allotment
Asian Life Insurance Company Limited has officially completed the allotment of its rights shares. Out of the 14,279,312.48 units issued, a total of 358,512.48 shares will now go to a public auction due to under-subscription. The rights issue, which was managed by Muktinath Capital Limited, was a strategic move to strengthen the company’s capital base and comply with regulatory requirements.
Rights Issue Details
The company had issued rights shares to its shareholders in a 1:0.42 ratio, meaning that for every 100 shares held, an investor was entitled to apply for 42 new shares. The issue price for each share was NPR 100, and the eligibility cutoff date for shareholders to apply was Jestha 16, 2082.
Despite the large issue size, the rights offering received a modest subscription rate, with applications covering nearly 97% of the total shares offered. The company received applications for 13,920,800 shares from a total of 27,622 shareholders. This left a shortfall of 358,512.48 shares, which will now be offered to the broader market.
Auction of Unsubscribed Shares
The unsubscribed 358,512.48 units will be sold through a public auction process. This provides an opportunity for new and existing investors, including the general public and institutional investors, to participate in a competitive bidding process. The auction is expected to find demand from those looking to acquire a stake in a growing life insurance company at a potentially competitive price.
To ensure transparency and efficiency, Asian Life Insurance has also confirmed that investors who applied for more shares than their entitlement but did not receive a full allotment will have their excess funds refunded. The refunds will begin from August 27 (Bhadra 11), and will be transferred directly to the applicants’ bank accounts.
Significance of the Rights Issue
Rights issues are a common strategy for insurance companies in Nepal to raise capital and meet regulatory requirements set by the Insurance Board. By issuing additional shares, Asian Life Insurance aims to strengthen its paid-up capital, enhance financial stability, expand its business operations, and support long-term policyholder benefits. The upcoming auction of the unsubscribed shares provides a valuable opportunity for the broader investor community to acquire shares in one of Nepal’s prominent life insurance companies. As the auction unfolds, investor demand will play a key role in determining the final pricing and subscription of these shares, which in turn will influence the company’s long-term market position.
For More: Asian Life Rights Share Allotment