Securities Board of Nepal (SEBON) has recently given final approval to Nepal Life Insurance Company (NLIC) to float 30.96 lakh units Further Public Offering (FPO) shares. The Board has approved NLIC to issue FPO at Rs 1,425 (premium of Rs 1,325 added to the paid up value of Rs 100). After issuing FPO with premium of Rs 1,325, NLIC will be able to add Rs 4.10 arba in its reserve and surplus account.
Previously in June, 2016 NLIC BOD’s had decided to issue FPO at Rs 2,951 per share but it was later stopped by SEBON due to unclear rules regarding fixation of FPO price. On an expectation of high FPO price, market price of NLIC shoot up as high as Rs 4,936 in NEPSE. If NLIC was allowed to issue FPO at Rs 2,951 that time, Rs 8.82 arba could have been collected in the premium amount.
