Prabhu Mahalaxmi Life Dividend Distribution to Shareholders

27th January 2026, Kathmandu

Prabhu Mahalaxmi Life Insurance Limited (PMLI) has entered a key phase of its financial calendar as it begins the distribution of dividends for the fiscal year 2081/82. Following the successful conclusion of its ninth Annual General Meeting (AGM) held on Poush 29, 2082 (January 13, 2026), at the Silver Oak Banquet in Kathmandu, the company received a clear mandate from its shareholders to proceed with the payout. This distribution is more than just a routine financial transaction; it represents the company’s commitment to returning capital to its investors and signals its robust operational health in Nepal’s competitive insurance landscape.

Prabhu Mahalaxmi Life Dividend

The dividend package approved by the AGM consists of a total return of 8.421 percent. This is split into 4 percent bonus shares and a 4.421 percent cash dividend, the latter of which includes the necessary amount for dividend tax purposes. By balancing bonus shares and cash, Prabhu Mahalaxmi Life is simultaneously rewarding shareholders with immediate liquidity and increasing its paid-up capital to meet the growing regulatory requirements set by the Nepal Insurance Authority.

The Mechanics of Cash Dividend Distribution

Efficiency and transparency are the hallmarks of modern dividend payments in Nepal, and Prabhu Mahalaxmi Life has utilized the Centralized Depository System (CDS) to ensure a seamless experience. The distribution of the 4.421 percent cash dividend began almost immediately after the AGM, starting on Poush 30, 2082.

For shareholders, the process is largely automated. The funds are transferred directly to the bank accounts that are linked to their respective DEMAT accounts through the IPS (Interbank Payment System). This electronic transfer eliminates the need for physical checks or manual collection at the bank. To ensure there are no delays in receiving these funds, shareholders are encouraged to verify that their bank account details—specifically the account number and Bank Identifier Code (BIC)—are correctly updated in their Mero Share profiles.

Understanding Bonus Share Crediting

While the cash component is processed quickly, the 4 percent bonus shares follow a slightly longer regulatory path. These shares effectively increase the number of units a shareholder owns without requiring any additional investment. However, before they appear in a DEMAT account, several administrative steps must be completed:

Verification: The company must finalize the list of eligible shareholders based on the book closure date, which was Poush 20, 2082.

Registration: The new shares must be formally registered with the Office of the Company Registrar.

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Listing on NEPSE: The Nepal Stock Exchange (NEPSE) must approve the listing of the bonus units so they can be traded on the secondary market.

CDS Crediting: Once listed, CDS and Clearing Limited (CDSC) credits the units to the individual portfolios.

Shareholders do not need to take any action for this; the units will automatically reflect in their portfolio once the listing process, which typically takes a few weeks post-AGM, is finalized.

Financial Health and Future Outlook

The decision to distribute an 8.421 percent dividend reflects a period of significant growth for Prabhu Mahalaxmi Life. Since the merger of Prabhu Life and Mahalaxmi Life, the consolidated entity has focused on expanding its market share and optimizing its insurance portfolios. As of the end of the fiscal year 2081/82, the company’s paid-up capital stood at approximately NPR 5.1 billion. With the addition of the 4 percent bonus shares, this capital base will increase to roughly NPR 5.3 billion, further strengthening the company’s solvency margin and its ability to take on larger risks.

For the investors, this consistent dividend history—matching the 8.421 percent provided in the previous fiscal year—builds long-term confidence. In a market where some insurers have struggled to maintain payouts due to rising claim ratios, PMLI’s ability to sustain dividends is a strong indicator of its prudent underwriting and investment strategies.

Final Steps for Shareholders

As the distribution continues, shareholders who have not yet received their cash dividend should first check their DEMAT status. If your bank details were not updated by the book closure date, the dividend may be held in a “suspense account” until the information is corrected. You can resolve this by visiting your Depository Participant (DP) or updating your information through the Mero Share portal.

The Prabhu Mahalaxmi Life Dividend distribution is a testament to the insurer’s philosophy of “Shared Prosperity.” By rewarding its investors, the company ensures a loyal capital base that supports its vision of becoming the leading life insurance provider in Nepal.

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