The meeting will approve a proposal of increasing capital through right shares from the government, Nepal Rastra Bank and Nepal Bank as per the Capital Plan Study Report 2079 prepared according to the direction of Nepal Insurance Authority (NIA).
As per the directive of NIA, the institution is required to maintain paid-up capital of Rs 5 billion. Currently, it has paid-up capital of Rs 181 million.
Right now, the corporation has 27.78 percent share ownership of Nepal Government, 55.55 percent of Nepal Rastra Bank and 16.67 percent of Nepal Bank.
Following the implementation of new Insurance Act 2079, the government owned company must convert itself to public company. In order to complete that, it will issue IPO to the general public after capital increment from promoters.
The corporation has forwarded a capital plan of maintaining 70:30 capital structure of promoter and ordinary shareholders.
