Prabhu Mahalaxmi Life to Hold AGM to Approve Dividend, Book Closure Announced
23rd December 2025, Kathmandu
The life insurance industry in Nepal has undergone a massive transformation in recent years primarily driven by the mandate of the Nepal Insurance Authority to strengthen the financial base of insurance providers. Among the many companies that chose to consolidate their strengths through strategic partnerships the merger of Prabhu Life Insurance and Mahalaxmi Life Insurance stands out as a landmark event.
Prabhu Mahalaxmi Life AGM
This union created Prabhu Mahalaxmi Life Insurance Limited a robust entity that has since been focused on expanding its reach and enhancing its service quality across the country. As the company enters its ninth year of operation it has reached a significant milestone by calling its ninth annual general meeting and proposing a multi part dividend for its investors. This announcement is a clear signal of the company financial stability and its commitment to delivering value to its stakeholders in the competitive nepalese market.
DETAILS OF THE PROPOSED DIVIDEND FOR THE FISCAL YEAR
In a recent board of directors meeting held on Poush 7 the leadership of Prabhu Mahalaxmi Life Insurance finalized a dividend proposal that has been warmly received by the investment community. The company has declared a total dividend of eight point four two one percent based on its current paid up capital. This return is a testament to the efficient management of the company resources following the merger. The dividend is divided into two distinct components. First the board has proposed a four percent bonus share distribution. Bonus shares are a popular way for companies to reward shareholders while simultaneously increasing their own equity base. Second the company has announced a four point four two one percent cash dividend which includes the necessary amount for dividend tax. This balanced approach provides shareholders with both immediate liquidity and the potential for long term capital appreciation.
EXPANDING THE CAPITAL BASE TO MEET REGULATORY STANDARDS
The issuance of four percent bonus shares is not merely a reward for investors but a strategic financial move to align with the minimum capital requirements set by the national regulatory bodies. Before the announcement of this bonus issue the paid up capital of Prabhu Mahalaxmi Life Insurance was approximately five billion one hundred three million nepalese rupees. Once the ninth annual general meeting approves the bonus shares and they are formally issued the total paid up capital of the company will rise to five billion three hundred seven million seven hundred ninety three thousand nine hundred twenty nepalese rupees. Having a larger capital base is essential for a life insurance company as it enhances its capacity to take on higher risks and provides a stronger guarantee to policyholders. This expansion also places Prabhu Mahalaxmi Life Insurance among the elite group of insurance companies in Nepal that have successfully met and exceeded the high capital thresholds required for a sustainable future.
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LOGISTICS AND CORE AGENDA OF THE NINTH ANNUAL GENERAL MEETING
The ninth annual general meeting of Prabhu Mahalaxmi Life Insurance is scheduled to be held on Tuesday Poush 29. The company has chosen the Silver Oak Banquet and Event Center located in the Gairidhara area of Kathmandu as the venue for this important gathering. The meeting is set to commence at eleven in the morning. This assembly serves as the highest decision making body of the company where shareholders have the opportunity to interact with the management and vote on key resolutions. One of the primary tasks for the attendees will be to review and approve the address by the chairman and the annual report for the fiscal year twenty eighty one twenty eighty two. Additionally the shareholders will examine the audited financial statements including the balance sheet the profit and loss account and the cash flow statement for the same period. These documents are vital for understanding the financial health and operational efficiency of the company over the past twelve months.
BOOK CLOSURE DATES AND ELIGIBILITY CRITERIA FOR INVESTORS
For investors who are looking to secure the declared dividend it is important to understand the concept of book closure. Prabhu Mahalaxmi Life Insurance has decided to close its books on Poush 21 for the purposes of the annual general meeting and dividend distribution. In the context of the Nepal Stock Exchange this means that only those shareholders who have bought and held the shares up to the close of business on Poush 20 will be eligible to attend the meeting and receive the eight point four two one percent dividend. Investors who purchase the shares on or after Poush 21 will not be entitled to these rewards for the current cycle. This timeline often leads to an increase in trading volume in the secondary market as investors rush to finalize their holdings before the book closure date. It is a crucial window for both long term investors and short term traders to make their moves.
GOVERNANCE AUDIT AND CORPORATE RESPONSIBILITY INITIATIVES
The upcoming annual general meeting will also address several governance and administrative matters that are essential for the smooth functioning of the company. Under the provisions of the companies act the meeting will appoint an external auditor for the fiscal year twenty eighty two twenty eighty three and determine their remuneration. The current auditor is eligible for reappointment which provides a sense of continuity in the oversight of the company financial records. Furthermore the meeting will authorize the board of directors to make any necessary amendments to the memorandum of association and the articles of association. These updates are often required to reflect changes in the capital structure or to comply with new regulations from the insurance authority. The meeting will also grant formal approval for the expenditures made under corporate social responsibility. By investing in social welfare and community development Prabhu Mahalaxmi Life Insurance reinforces its position as a responsible and ethical corporate citizen in Nepal.
CONCLUSION AND FUTURE OUTLOOK FOR THE COMPANY
As Prabhu Mahalaxmi Life Insurance prepares for its ninth annual general meeting the future looks promising for its stakeholders. The company has successfully navigated the complexities of a major merger and is now reaping the benefits of increased scale and operational synergy. With a new paid up capital exceeding five point three billion rupees and a strong focus on digital innovation and customer service the company is well positioned to capture a larger share of the life insurance market. The declaration of a healthy dividend is a sign of management confidence in the company ability to generate sustainable profits. For shareholders the ninth agm is an opportunity to celebrate the achievements of the past year and gain insights into the strategic plans that will drive the next phase of growth for Prabhu Mahalaxmi Life Insurance.
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