Guardian Micro's Special General Meeting Postponed, Suspicions of Manipulation in Rights Issue

The special general meeting of Guardian Micro Life Insurance Company has been postponed. The company deferred the meeting, scheduled for April 18, following a directive from the Nepal Insurance Authority.

The meeting was called to approve a proposal for issuing 100% rights shares. The company’s board of directors, in a meeting on March 31, had decided to convene the special general meeting for this purpose. However, the Authority intervened, citing regulatory concerns, as the company proceeded with the rights issue without prior approval.

The Authority had sought clarification from the company, and upon finding the response unsatisfactory, it issued a letter on Tuesday directing the postponement of the meeting. The company had already closed its share register on April 10 for the purpose of the meeting.

Currently, the company’s paid-up capital stands at NPR 750 million. The plan was to double it to NPR 1.5 billion through the rights issue. Last December, the company issued an IPO worth NPR 225 million, comprising 2.25 million shares at NPR 100 each, which increased its capital to NPR 750 million.

The company’s shares, which began trading on February 10, reached a peak of NPR 2,778 by April 15. Amid this, allegations have surfaced that investors manipulated the market by leveraging the rights issue announcement.

The Authority’s intervention has cast uncertainty over the company’s rights issue process.