As per the company, the request has been made as per the decision of the special general meeting held on May 8 to increase authorized, issued and paid-up capital.
The 59th board of directors meeting of the company held on May 24 decided to demand 50 percent additional capital from the existing promoter shareholders.
Currently, the company has paid-up capital of Rs 1.40 billion which will reach Rs 2.10 billion after the promoter shareholders add 50 percent i.e. Rs 700 million capital.
Following this, the company is planning to issue initial public offering (IPO) worth Rs 900 million after which the paid-up capital will reach Rs 3 billion.
As per IB direction, the life insurance company are required to maintain minimum paid-up capital of Rs 5 billion.
The company is planning to merge/acquire another company to meet the minimum capital requirement.