29th October 2025, Kathmandu
Gurans Laghubitta Bittiya Sanstha Limited has set its book-closure date, a critical corporate action that determines shareholder eligibility for its proposed 15 percent dividend for the fiscal year 2024/25 and participation in the upcoming General Meeting.
Gurans Laghubitta Book Closure
This strategic announcement, which includes a substantial bonus share component, underscores the microfinance institution’s commitment to both rewarding its investors and strengthening its internal financial framework.
Understanding the Book-Closure and Dividend Eligibility
The book-closure period is a vital regulatory requirement in the Nepalese capital market, serving as a cutoff point to freeze the company’s shareholder register. This mechanism ensures clarity and fairness in the distribution of corporate benefits.
Key Date: The book-closure will commence on 14th Kartik 2082
Record Date: Consequently, the last day to buy or hold shares to be eligible for the announced benefits is 13th Kartik 2082. Only shareholders registered in the company’s books by the end of this date will be entitled to receive the proposed dividend and vote at the General Assembly.
Significance: This procedure is crucial for shareholders. For investors seeking the dividend, it provides a clear deadline for acquiring the shares. Conversely, the market price of the stock is typically adjusted on the day the stock begins trading ex-dividend (usually the day the book closure starts, 14th Kartik 2082), reflecting the value of the announced dividend.
The Proposed 15% Dividend Structure and Capital Growth
Gurans Laghubitta’s proposed total dividend of 15 percent is a blend of bonus shares and a nominal cash dividend, a common strategy among high-growth financial institutions like microfinance companies in Nepal.
Bonus Shares (14.25%): This is the main component of the reward, where existing shareholders will receive new shares without any cash payment. The bonus shares are valued at Rs. 1.65 Crores based on the current paid-up capital of Rs. 11.58 crores (as of the decision date).
Cash Dividend (0.75%): This smaller portion, worth approximately Rs. 8.69 lakhs, is primarily issued to cover the tax liability on the bonus shares as per prevailing tax laws, ensuring a smoother process for the shareholders.
Impact of Bonus Shares on Capital: The distribution of bonus shares serves a dual purpose. First, it effectively rewards shareholders by increasing the number of shares they own, thus enhancing their equity stake. Second, and equally important, it leads to the capitalization of retained earnings, thereby increasing the institution’s official paid-up capital. This increase in capital is vital for microfinance institutions to meet regulatory capital adequacy requirements set by Nepal Rastra Bank (the central bank) and supports the institution’s future plans for network expansion and lending capacity. While the total market capitalization of the company theoretically remains the same—as the stock price adjusts proportionally to the issuance, the higher share volume enhances market liquidity, potentially attracting more retail investors.
General Meeting: Approving Dividends and Key Governance
The proposed dividend and other essential corporate matters require formal approval by the shareholders in the upcoming general meeting.
Meeting Details: The General Meeting is scheduled for 27th Kartik 2082 at the Hile Kanziruwa Makalu Hotel in Dhankuta, starting at 10:00 AM.
Crucial Agendas: Beyond endorsing the 15 percent dividend, the assembly will address:
Capital Adjustments: Amendments to the Articles of Association and bylaws to reflect the increased capital post-bonus share issuance, ensuring full regulatory compliance.
Director Appointments: The appointment of four directors representing the founding shareholders, a move critical for maintaining strategic leadership and oversight.
Financial Scrutiny: Review and approval of the previous fiscal year’s annual and auditors’ reports, along with the appointment and remuneration of auditors for the current fiscal year.
By addressing these core governance functions, from capital structure to director appointment and financial oversight, Gurans Laghubitta is demonstrating a strong adherence to corporate governance best practices, building sustained confidence among its investors and strengthening its foundation for continued growth in the competitive microfinance sector. This proactive engagement is key for the stability of a financial institution operating in a heavily regulated environment.
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