United Ajod Insurance Rights Share Issue Opens from Chaitra 26
19th March 2026, Kathmandu
United Ajod Insurance Limited is set to significantly expand its capital base by offering a rights share issue to its existing shareholders.
United Ajod Insurance Rights
This strategic move, beginning Chaitra 26, 2082 (April 8, 2026), is designed to meet the mandatory capital requirements set by the Nepal Insurance Authority while allowing current investors to increase their equity stake at a discounted rate.
Rights Share Issue Overview
The United Ajod Insurance Rights issue is structured to provide one new share for every ten shares currently held by a shareholder. This 10% infusion is a key step in the company’s post-merger integration and growth strategy.
Issue Ratio: 10:100 (10%)
Total Units: 2,310,000 shares
Face Value: NPR 100 per share
Total Value: NPR 23.10 crore
Issue Open Date: Chaitra 26, 2082
Issue Close Date: Baisakh 16, 2083
Capital Structure Post-Issue
United Ajod Insurance was formed through the merger of United Insurance and Ajod Insurance. Before this rights issue, the company’s paid-up capital stood at approximately NPR 2.10 billion. Upon successful completion and allocation of the 2,310,000 units, the total paid-up capital will rise to NPR 2.33 billion, strengthening its solvency and underwriting capacity.
Eligibility and Participation
Only investors who held United Ajod Insurance shares before the “Book Closure” are eligible to apply for these rights shares.
Book Closure Date: Falgun 17, 2082.
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Eligibility Cutoff: Shareholders registered in the company’s books by the end of trading on Falgun 14, 2082, are entitled to apply.
Application Limit: Shareholders can apply for up to 10% of the total number of units they held as of the record date.
Credit Rating and Risk Assessment
For this specific issuance, ICRA Nepal has assigned an Issuer Rating of [ICRANP-IR] BBB+ (Triple B Plus). This rating indicates a moderate degree of safety regarding the timely servicing of financial obligations and suggests a moderate credit risk profile.
Key rating drivers include:
Market Position: Benefit of operational scale following the 2023 merger.
Solvency: Adequate solvency margin expected to be further bolstered by this equity infusion.
Risks: High concentration in the motor insurance segment (~41% of gross premiums) and a highly competitive, fragmented general insurance market.
Application Process and Management
The United Ajod Insurance Rights issue is being managed by Laxmi Sunrise Capital Limited. Eligible shareholders can apply through the following channels:
Mero Share: The most convenient method is applying via the “Current Issue” section of the Mero Share portal or app.
C-ASBA: Applications can also be submitted through all C-ASBA approved banks and financial institutions across Nepal.
Conclusion
The Chaitra 26 rights issue represents a pivotal moment for United Ajod Insurance as it moves to solidify its standing in the top tier of Nepal’s non-life insurance companies. For shareholders, this is an opportunity to maintain their ownership percentage and capitalize on the long-term synergies created by the recent merger. Investors are advised to finalize their applications before the Baisakh 16, 2083 deadline to avoid the forfeiture of their rights.
For More: United Ajod Insurance Rights
