Laxmi Sunrise Capital Calls Annual General Meeting with Dividend Proposal

17th October 2025, Kathmandu

The upcoming 15th Annual General Meeting (AGM) of Laxmi Sunrise Capital is set to be a significant event for its shareholders, highlighting key aspects of corporate governance and investor returns in the Nepalese capital market.

Laxmi Sunrise Capital Calls AGM

Scheduled for Kartik 21, 2082 (October 21, 2025), the meeting’s main agenda is the proposal to approve a substantial cash dividend of NPR 7,71,94,736.84, which translates to approximately NPR 7.71 crore. This proposed distribution, originating from the accumulated profits of the fiscal year 2081/082, including tax liabilities, underscores the company’s profitability and commitment to its investors. The formal approval of this dividend at the AGM marks a crucial step in the process of ensuring shareholder benefits and maintaining a transparent financial structure.

The Heart of the Matter: The NPR 7.71 Crore Cash Dividend

A cash dividend proposal of this magnitude, specifically NPR 7.71 crore from Laxmi Sunrise Capital, sends a clear and positive signal to the market. For investors, a cash dividend represents a direct, tangible return on their investment, providing immediate liquidity. In the context of the Nepalese stock market, which is predominantly influenced by financial institutions, dividends are a primary factor in investment decisions. This proposed distribution, stemming from the profits of FY 2081/082, affirms the company’s strong financial health and operational success over the last fiscal cycle.The process of dividend distribution in Nepal is meticulously governed by regulatory bodies such as the Securities Board of Nepal (SEBON) and the Nepal Rastra Bank (NRB), especially for capital market intermediaries and financial institutions. The board of directors first proposes the dividend, but it requires the explicit approval of shareholders at the AGM to be finalized and disbursed. This process ensures that shareholder consent is secured before any portion of the company’s profit is formally paid out, reflecting robust corporate governance practices. The 5\% dividend distribution tax in Nepal is also factored into the overall cost, which is included in the stated 7.71 crore figure, ensuring compliance and transparency in the final payout.

Understanding the Significance of the Annual General Meeting (AGM)

The Annual General Meeting (AGM) is not merely a formality; it is the cornerstone of corporate accountability and shareholder democracy in Nepal. The Companies Act mandates that public companies hold an AGM annually within six months of the fiscal year’s conclusion. For Laxmi Sunrise Capital, the 15th AGM serves several essential functions beyond the dividend proposal:

Financial Scrutiny and Approval: A core part of the agenda involves the review and approval of the auditor’s report and the comprehensive financial statements for the fiscal year ending in Ashad, 2082. This ensures that the company’s books are transparent, accurate, and compliant with national financial reporting standards. The presence and presentation by the company’s auditors provide an independent check on the financial health that justifies the dividend.

Mandate for Leadership: The AGM is where shareholders exercise their rights to appoint an auditor for the upcoming fiscal year 2082/83 and determine their remuneration. This appointment is critical for maintaining an unbiased oversight of the company’s future financial dealings. Additionally, shareholders may discuss and vote on the Board of Directors’ report, setting the tone and strategic direction for the coming year.

Transparency and Disclosure: The entire AGM process ensures that all stakeholders, particularly the minority shareholders, are informed of the company’s performance and future strategy. This open discussion on corporate reports and financial health helps to protect investor interests and is a key driver for improving corporate governance standards within the Nepalese capital market. A firm with good governance is far more likely to attract both domestic and foreign investment.

Laxmi Sunrise Capital’s Role in Nepal’s Investment Landscape

As a capital company (likely a merchant banking or investment services arm of a larger financial group like Laxmi Sunrise Bank), Laxmi Sunrise Capital plays a crucial, specialized role in the Nepalese financial ecosystem. These companies are central to managing capital, facilitating investment, and operating mutual funds. In Nepal, the broader financial sector—including commercial banks, development banks, and capital market players—dominates the overall market capitalization on the Nepal Stock Exchange (NEPSE). Capital companies like Laxmi Sunrise Capital function as key intermediaries:

Capital Mobilization: They are instrumental in mobilizing capital through primary market activities like Initial Public Offerings (IPOs) and Further Public Offerings (FPOs), helping other enterprises raise necessary funds for growth and development.

Mutual Fund Management: They manage various mutual fund schemes (like the ones previously announced for dividends) that allow a large base of retail investors to diversify their portfolios across different securities with professional management, thereby increasing overall retail participation in the capital market.

Market Liquidity: By providing services like issue management and acting as registrars, they contribute indirectly to the market’s liquidity and efficiency, helping to streamline the process for both issuing companies and investing public.

The dividend proposal, therefore, is not just a company announcement; it reflects stability and financial prudence, which are essential for building investor trust in the specialized and regulated sector of capital market services. The decision to propose a specific, hefty cash dividend amount after the conclusion of FY 2081/082 reinforces the financial service sector’s pivotal position in Nepal’s economic growth narrative, emphasizing the link between strong corporate earnings and direct shareholder benefit.

The upcoming 15th AGM of Laxmi Sunrise Capital is a testament to the structured and regulated approach to corporate finance in Nepal. The approval of the NPR 7.71 crore cash dividend is a widely anticipated event that will solidify investor returns and highlight the company’s commitment to profitable growth and financial transparency. This meeting is an important moment for the firm to reinforce shareholder trust and ensure its regulatory mandates are fulfilled for the next fiscal year.

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