The government-owned telecom company Nepal Telecom (NTC) will provide a 20% bonus share and a 20% cash dividend for its shareholders. The company has called for an Annual general meeting (AGM) on Chaitra 24 to approve the proposal for the bonus share and cash dividends.
It is the first time the company is issuing bonus shares to its shareholders. Although a government company before, Nepal Telecom transformed into public in April 2004 (Baisakh 1, 2061) and remains one of the most profitable government enterprises.
The company has convened its 14th general meeting to approve the bonus proposals. It is providing a 20% bonus share on its current total paid-up capital. In addition, it is also paying Rs.20 cash dividend (including tax) per share to its shareholders.
NTC will host its general meeting at Tribhuwan Army Officers Club, Tundikhel starting from 11 am. For the meeting, the company will close its books from March 26 – 30.
The shareholders trading till Chaitra 10th will be entitled to the dividend and also participate in the general meeting.
Also read: NTC Increases Profit by 18 Percent in Q2, FY 078/79
Ntc providing bonus share for the first time
The company will pass its proposal to pay 20 rupees a share to its shareholders on the profit it made from FY 077/78 adhering to the Sub-Section 2 of Section 182, of the Company Act, 2063. Likewise, the company is going to issue bonus shares in a ratio of 20 shares per 100 for FY 077/78. It is the first time that the company provides bonus shares to its shareholders.
Currently, the government owns 91.5% of shares in Ntc with the general public owning 8.47% of shares. The Citizens Investment Trust funds claim 0.03% shares in the largest telco of Nepal. But the company could go further to raise public ownership of the company. There is news of Ntc offering a 22% share for its customers. If that happens, more public will have ownership in the affluent government company.
Check out: How to apply for IPO and transfer shares via Mero Share?
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