The government-backed telecommunication company Nepal Telecom (NTC) also known as Nepal Doorsanchar Company Ltd. has announced cash dividends for its shareholders for Fiscal Year FY 2079/80. As per the company’s board decision, Ntc investors will receive Rs 40 per share of its paid-up capital on its profit from FY 2079/80.
The company has decided to send a request to the Finance Ministry for the approval of the proposal. As per the practice, the issuance of the cash dividends will require approval from the Ministry and a general meeting. After the proposal passes at the company’s 16th annual general meeting, Ntc will distribute the dividends among its stakeholders in the company.
Nepal Telecom will issue Rs 40 cash dividends per share for FY 2079/80 at its 16th annual general meeting
Nepal Telecom is a public company with 91.49 percent of the shares of the government. The company runs independently despite operating under the government. Also what must be noted is that since the majority of the shares in NTC are owned by the government, it will receive the same amount of dividends.
Nepal Telecom maintains 40% cash dividends
In FY 2078/79 also, the company allocated Rs 40 per share cash dividends to its shareholders (the company itself and other investors). The same year, it issued a 20 percent bonus share and 20 percent cash dividends amounting to a total of 40%.
At the time of writing this post, NTC’s latest share price stood at Rs 940.10 per unit.
Headquartered in Bhadrakali Plaza, Kathmandu, Nepal Telecom is Nepal’s largest telecommunication service provider. The company is the sole provider of fixed-line and leased-line services in Nepal. It provides both GSM mobile service and FTTH fiber internet services across the country. Nepal Telecom operates actively from 184 locations across the country and boasts around 5,500 employees. Check out: Nepal Telecom Fiber Internet: Price, Speed, Offer, Packs
At a time when communication providers and many government enterprises have failed to return financial gains, Nepal Telecom remains a consistent exception. In FY 2079/80, the company generated Rs 7.80 arab in profit while drawing in Rs 44.86 arab in revenue. NTC is also planning to float 20 percent shares to the customers.
Is the decision to distribute Rs 40 in cash dividends for FY 2079/80 a good decision from Nepal Telecom? And should it expedite the plan to divest more of its shares to the public or to an international telecom giant as a strategic partner? Drop your opinions in the comment below.
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