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3 billion rupees by way of a rights issue, the company said in a stock exchange filing. Subject to the necessary approvals, the company is to issue 181.
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5 million ordinary shares at 18.50 rupees each in the ratio of one for every two shares.
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The proceeds are to be utilized to fund the future expansion of the insurance business, the company said. The current stated capital of the entity is 1.5 billion rupees consisting of 363 million shares. The insurance company appointed a new deputy chairman (Husein N Esufally) and a chief executive officer last month. The stock closed at 23.00 rupees on Wednesday.
The government should introduce new laws to enable the Auditor General, by creating a new division, to examine at a random 10 the annual accounts of 10 companies, to see that the accounts are a clear representation of facts, specially in regard to certain hidden expenditure of a suspicious kind and that the shareholders ,specially the minorities, have been treated fairly. Lobbying by some questionable boards practicing deceptive methods , to dissuade this should not be allowed.