Nepal Lube Oil’s Final Day for Dividend Eligibility and AGM Participation
25th September 2025, Kathmandu
Investors holding shares of Nepal Lube Oil Limited must take note that today is the final opportunity to secure eligibility for the company’s recently proposed dividend.
NLO Dividend And AGM
The company has announced a book closure period from 28 September to 17 October, 2025 (Ashwin 12 to Ashwin 31, 2082). This means that only shareholders whose names are registered in the company’s books by the end of the trading session, Ashwin 11, 2082 (September 27, 2025), will be eligible to receive the dividend and participate in the upcoming Annual General Meeting (AGM). This is a crucial deadline for all investors, as any shares bought after today’s trading will not entitle the buyer to these benefits. The company’s consistent profitability and steady dividend history make it an attractive option for both long-term and short-term investors seeking capital growth and regular returns.
Proposed Dividends and Annual General Meeting Details
For the fiscal year 2024/25, Nepal Lube Oil’s board of directors has proposed a two-part dividend:
20 Percent Bonus Shares: The company plans to issue a 20% bonus share distribution to its existing shareholders. This will increase the number of shares held by each investor without any additional cost to them, while also increasing the company’s paid-up capital.
1.05264 Percent Cash Dividend: In addition to the bonus shares, the company has also proposed a 1.05264% cash dividend. This cash payout is specifically intended to cover the tax obligations that shareholders incur on the bonus share distribution, a shareholder-friendly practice that ensures a hassle-free experience.
To get approval for these dividend proposals and other key business matters, the company has scheduled its 34th Annual General Meeting (AGM) for Ashwin 31, 2082 (October 17, 2025). The meeting will be held at The Plaza in Pulchowk, Lalitpur, and will begin at 11:30 a.m.
Key Proposals on the AGM Agenda
The upcoming AGM is set to be a pivotal event for Nepal Lube Oil as it will address several strategic proposals that will shape the company’s future growth trajectory. The agenda includes:
Finalizing the Dividend: Shareholders will vote on the proposed 20% bonus share and 1.05264% cash dividend for tax purposes.
Approval of Rights Shares: The meeting will also discuss and vote on a significant proposal to issue 200% rights shares. This massive rights issue will allow the company to raise a substantial amount of capital, which is expected to be used for expansion, operational improvements, and strengthening its capital base. A rights share gives existing shareholders the right, but not the obligation, to purchase new shares at a discounted price, usually proportional to their current holdings. This is a common method for companies in Nepal to raise capital while also giving their existing investors an opportunity to increase their stake.
Corporate Governance: The AGM will also cover the appointment of directors representing the public shareholders and amendments to the company’s Memorandum and Articles of Association to align with the new capital structure.
Importance of the Book Closure Date
The concept of book closure is paramount in the stock market. It is a period during which a company temporarily closes its shareholder registry to determine who is eligible for upcoming corporate actions like dividends and voting rights at the AGM. For Nepal Lube Oil, the book closure from Ashwin 12 to Ashwin 31 means that all trades settled after today will not be considered for dividend eligibility. Therefore, investors who wish to be a part of the company’s future growth and receive these dividends must ensure their shares are in their Demat accounts by the end of today.
This deadline is particularly important for active traders and long-term investors. For long-term investors, this is a chance to solidify their position in a company with a strong track record of rewarding its shareholders. For traders, this creates a period of increased activity as investors rush to acquire shares before the deadline.
By proposing a combination of bonus shares and cash dividends, Nepal Lube Oil is demonstrating a balanced approach to financial management, rewarding shareholders while retaining enough earnings to reinvest for long-term growth. The decision to issue a substantial rights share also indicates strong confidence in the company’s future. All eyes will be on the 34th AGM as the company prepares to take these significant steps to strengthen its capital base and position itself for future expansion in the competitive lubricants sector.
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