Sarbottam Cement Announces 20 Percent Dividend
17th November 2025, Kathmandu
Sarbottam Cement Limited has officially announced a significant 20 percent dividend for its shareholders, following a decision made during the company’s board meeting held on November 14, 2025.
Sarbottam Cement Announces Dividend
This generous distribution underscores the cement manufacturer’s strong financial performance and its commitment to providing substantial returns to its investors. The announcement is a powerful indicator of the company’s stability and its successful navigation of the often-volatile construction and manufacturing sector in Nepal.
Details of the Approved Dividend Distribution
The board of directors approved a total dividend payout of 20 percent based on the company’s current paid-up capital. The dividend structure is carefully split between two components: a non-cash bonus share component and a cash payout.
The 20 percent total dividend is comprised of the following:
5 Percent Bonus Shares: This portion of the dividend will be issued as new shares, increasing the shareholding of the current investors. The issuance of bonus shares serves to strengthen the company’s capital base and enhances its overall financial resilience, allowing for future expansion or projects to be financed with internal resources.
15 Percent Cash Dividend: This significant portion will be paid directly in cash to the shareholders. This cash component provides investors with immediate liquidity and often includes the amount necessary to cover the tax liability associated with the distribution of the bonus shares, a standard practice in Nepalese corporate dividend declarations.
The decision reflects the company’s robust profitability and sound financial health during the last fiscal year, enabling it to maintain a high payout ratio even as it operates in a capital-intensive industry.
Capital Base and Market Position
The dividend is calculated based on the company’s current paid-up capital, which stands at 4.97 billion rupees. The distribution of the 5 percent bonus shares will lead to a proportional increase in this paid-up capital, further solidifying the company’s position and complying with regulatory requirements for capital maintenance.
Sarbottam Cement Limited holds a prominent position within the Nepalese manufacturing landscape. As one of the major producers of cement, it directly benefits from the ongoing infrastructure development and construction boom across the country. Key factors contributing to the company’s strong performance include:
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Manufacturing Efficiency: Operating with advanced technology and often known for high production efficiency.
Market Share: Maintaining a significant market share against both domestic and international competitors.
Infrastructure Demand: Benefiting from consistent government and private sector demand for high-quality construction materials, especially for national projects like highways, hydro-power plants, and urban housing development.
The company is currently awaiting the necessary endorsements from the relevant regulatory bodies and the approval of the general shareholders at the upcoming Annual General Meeting (AGM). Once approved, the distribution process will proceed, rewarding thousands of investors who hold shares in the company.
Impact of the Dividend on Investors
For shareholders, the 20 percent dividend announcement is extremely positive.
Bonus Shares: The 5 percent bonus issue increases the shareholder’s equity stake without requiring any additional cash investment, which is highly desirable for long-term investors focused on capital appreciation. Following the bonus share distribution, the company’s total issued shares will increase, which may temporarily affect the Earnings Per Share (EPS) but strengthens the capital base for sustained future growth.
Cash Flow: The 15 percent cash dividend provides immediate cash flow and liquidity, acting as a direct financial return on their investment.
This strong dividend declaration also serves to enhance investor confidence in the management and long-term viability of Sarbottam Cement Limited. It signals that the company’s cash flows are stable and that the management prioritizes returning value to its owners, thereby strengthening the company’s reputation in the capital market.
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