Kalinchowk Darshan Limited Proposes Dividend for FY 2081/82
27th November 2025, Kathmandu
Kalinchowk Darshan Limited (KDL) has announced a proposal to distribute a total dividend of 5.2632 percent to its shareholders for the fiscal year 2024/25.
Kalinchowk Darshan Proposes Dividend
This decision, made during the board of directors’ meeting held on Mangsir 10, 2082, is a common strategy employed by companies seeking to grow their equity base while rewarding investors.
Proposed Dividend Structure and Financial Basis
The proposed dividend package for Kalinchowk Darshan Limited is primarily composed of bonus shares, with a small cash component allocated to cover the associated tax obligations. This structure allows the company to conserve its cash reserves while increasing its shareholders’ equity stake.
Total Dividend Rate: The total proposed dividend rate stands at 5.2632 percent.
Paid-up Capital: The basis for this dividend distribution is the company’s current paid-up capital, which amounts to 60 crore rupees (NPR 600,000,000).
The dividend is broken down into the following components:
Bonus Shares: The company has proposed distributing 5 percent bonus shares. This stock dividend, issued at a face value of NPR 100 per share, amounts to 3 crore rupees. The issuance of these bonus shares will directly lead to an increase in the company’s paid-up capital, a strategic move to strengthen the capital structure.
Cash Dividend for Tax: The remaining 0.2632 percent of the dividend is proposed as a cash dividend. This cash amount, valued at 15.78 lakh rupees, is specifically intended to cover the required tax liability on the bonus shares. This ensures that shareholders receive the full benefit of the bonus shares without having to pay the tax out of pocket.
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Company Overview and Business Context
Kalinchowk Darshan Limited is a prominent player in Nepal’s tourism sector, primarily known for operating the Kalinchowk Cable Car in Dolakha district, which provides access to the famous Kalinchowk Bhagwati Temple.
Sector Role: As a company operating a cable car and integrated tourism infrastructure, its revenue generation is closely linked to domestic and international tourist traffic, making its dividend announcement an indicator of the post-pandemic recovery and stability in the tourism sector.
Capital Strategy: The decision to issue bonus shares is particularly strategic for a company like KDL. By transferring 3 crore rupees from retained earnings to paid-up capital, the company is increasing its permanent equity. This is essential for supporting future expansion plans, managing long-term debt, or meeting any potential regulatory requirements related to capital size for infrastructure companies.
Approval Process and Timeline
The proposed dividend is not yet final and is subject to mandatory corporate approval, following the standard procedure for publicly reporting companies.
Final Ratification: The dividend will be distributed only after endorsement by the company’s upcoming Annual General Meeting (AGM). The board of directors’ proposal serves as the initial decision, which shareholders must formally ratify before the dividend can be implemented.
Next Steps: Following the AGM’s approval, KDL will announce the book closure date, which determines the list of eligible shareholders who will receive the dividend. The company will then proceed with the listing of the bonus shares and the disbursement of the cash component.
This proposed 5.2632 percent dividend for the fiscal year 2081/82 signals a positive outlook for Kalinchowk Darshan Limited, demonstrating profitability and a commitment to utilizing a significant portion of its earnings to enhance shareholder value through increased equity participation.
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