Sun Nepal Life Rights Issue: Details, Eligibility & Dates in Nepal
25th April 2025, Kathmandu
Sun Nepal Life Insurance Company Limited is launching its rights offering and share sale starting on 13 May. The company will issue 27% of its existing paid-up capital.
Sun Nepal Life Rights Issue
This means shareholders will get 0.27 new shares for every existing share they hold. This move is aimed at strengthening its capital base.
Details of the Rights Offering
The company will offer a total of 1,069,632,320 shares, each priced at a face value of NPR 100. The total value of the rights offering is NPR 1.069 billion. Applications for the shares will be accepted until 2 June. Shareholders need to apply by this deadline to take part in the offering.
Eligibility and Application Process
Shareholders who own shares until 17 April are eligible to apply for the rights offering. The company closed its books on 18 April, and only those registered by that date can participate.
Applications can be submitted at the company’s central and regional offices, or through Nepal SBI Merchant Banking Limited, the sales manager for the offering. Additionally, interested investors can also apply via the “C-ASWA” system at participating banks and financial institutions.
Company Rating and Financial Stability
Sun Nepal Life Insurance has received a CARE NP BBB rating from CARE Ratings Nepal. This rating suggests that the company has an average ability to meet its financial obligations. The rights offering will help Sun Nepal Life Insurance meet its regulatory requirements set by the Insurance Regulatory Authority.
Strengthening Capital for Regulatory Compliance
The rights offering is part of the company’s effort to increase its paid-up capital to meet the Insurance Regulatory Authority’s required capital of NPR 5 billion. Currently, the company’s paid-up capital stands at NPR 3.96 billion. With the rights offering, Sun Nepal Life Insurance will raise an additional NPR 1.069 billion, moving closer to the required amount.
Important Dates and Market Update
The last date to apply for the rights offering is June 2. As of Thursday’s market close, the company’s share price was NPR 501 per share. Shareholders who meet the eligibility criteria and apply on time will have the opportunity to purchase additional shares at a favorable price.
In conclusion, this rights offering presents an opportunity for current shareholders to increase their investment in Sun Nepal Life Insurance. The company is taking steps to ensure its growth and financial stability by raising capital and meeting regulatory standards. This initiative is expected to strengthen the company’s position in Nepal’s growing insurance market.
For more: Sun Nepal Life Rights Issue
