Kathmandu. The proposed ‘Kathmandu Re’, which is about to come as a company in the second reinsurance, the founding shareholders More. There is a problem of how to manage such investment as there is more investment than expected.

Ramesh Kumar Bhattarai, the proposed director of the company, says that an investment commitment of around Rs 10 billion has been made for the founder shares of Sae Reinsurance. Of that, about Rs 5 billion came from banks and financial institutions and the same amount from other sectors, he said.

At present, it is proposed to increase the authorized capital of Kathmandu Rico to Rs 20 billion, issued capital to Rs 10 billion and paid up capital to Rs 7 billion. The company is preparing to raise Rs 3 billion from the IPO due to the provision of issuing at least 30 percent of the issued capital. Of the founder's shares, 20 percent will be acquired by a foreign insurance company as a partner.

In this case, for a capital of Rs 5 billion, it is necessary to find a founding shareholder within the country. However, after the demand of Rs 10 billion for the founder's share, there is a problem of how to manage it.

For the time being, it is planned to have an issued capital of Rs 10 billion. It is proposed that Devendra Pratap Shah, former chairman of the Insurance Committee, will be the chairman of the reinsurance company, Mahesh Guragain, former chairman of Nepal Reinsurance Company, Ramesh Bhattarai, chief executive officer of Mahalakshmi Life and Srichandra Bhatt, chief executive officer of Jyoti Vikas Bank. The company has stated that it will move ahead for the registration process by ensuring investment.