NLG Insurance to go public

NLG Insurance is floating primary offering worth Rs 67.5 million from tomorrow.

The non life insurance firm has offered its ordinary shares at face value of Rs 100. Among the total 675,000 ordinary shares, 27,000 units are allotted for the company's staffs, 33,750 units for mutual funds and the remaining 614,250 units are meant for general public.

The Initial Public Offering (IPO) managed by Civil Capital will be closed by April 2 at soonest or by April 12 at latest in case of under-subscription, it said. The insurance company's paid up capital Rs 157.5 million at present will be increased to Rs 225 million following the public offering.

Insurance companies have to increase their paid up capital as the regulator ¿ Insurance Board had directed life insurance companies to increase their paid up capital to Rs 500 million and non-life companies to Rs 250 million by the end of current fiscal year. NLG Insurance is planning to meet the regulatory paid up capital requirement by issuing bonus and right shares to the shareholders before the end of the current fiscal year.

At present there are 25 insurance companies, 16 non-life insurance companies and nine life insurance companies with Rastriya Beema Sansthan (RBS) that provides both life and non-life service.