United Ajod Insurance Limited (UAIL) has taken a significant step towards raising capital by submitting an application to the Securities Exchange Board of Nepal (SEBON) for the issuance of right shares. The application was submitted on Ashwin 4, 2081, and is currently under preliminary review by the regulatory authority.
The company plans to issue 3,150,000 units of right shares, which will be available to its existing shareholders in a 1:0.15 ratio. This means that for every one share, shareholders will have the opportunity to buy an additional 0.15 shares. The right shares are valued at Rs. 31.50 Crore, which will significantly increase the company’s paid-up capital.
At present, the paid-up capital of United Ajod Insurance stands at Rs. 2.10 Arba. Once the right shares are issued and adjusted, the company’s paid-up capital will rise to Rs. 2.41 Arba, further strengthening its financial base.
Laxmi Sunrise Capital Limited has been appointed as the issue manager for this right share issuance. The process, now in SEBON’s pipeline, will proceed after receiving necessary approvals, giving existing shareholders a chance to expand their stake in the company.
This move is a part of United Ajod Insurance’s broader strategy to enhance its capital structure, ensuring compliance with regulatory requirements and preparing for future growth in Nepal’s competitive insurance market.