10th May 2025, Kathmandu
In a significant move, the Nepal Stock Exchange (NEPSE) has listed the bonus shares of Nepal Life Insurance and Aatmanirbhar Laghubitta this Friday. This development is expected to benefit both companies’ shareholders and enhance the liquidity of the Nepali stock market.
NEPSE Bonus Share Listing
Nepal Life Insurance’s Bonus Share Listing
Nepal Life Insurance has listed 8,207,966.55 shares as part of its 10% bonus share offering. These shares were approved during the company’s Annual General Meeting (AGM) held on Magh 28, 2081 (10 February, 2025).
The 10% bonus shares issued by Nepal Life Insurance reflect its strong financial performance over the past year. The listed shares total 8,207,966.55 and are now available for trading on NEPSE.
Aatmanirbhar Laghubitta’s Bonus Share Listing
Similarly, Aatmanirbhar Laghubitta has listed 97,714.81 shares, representing its 14.25% bonus share distribution. This was approved at their AGM conducted on Poush 29, 2081 (January 13, 2025).
Aatmanirbhar Laghubitta’s decision to issue bonus shares underscores its positive business outlook and the company’s commitment to rewarding its investors. Shareholders will now be able to trade the bonus shares on NEPSE after they have been credited to their Demat accounts.
Trading of Bonus Shares
The bonus shares listed by both companies will be available for trading starting Sunday. However, investors must ensure that the shares are deposited into their Demat accounts before they can engage in transactions. Only shareholders who have successfully credited their bonus shares into their beneficiary accounts will be able to trade them.
Demat Account Requirement
For investors to trade these newly listed bonus shares, they need to have a Demat account. Shareholders who have not yet converted their physical shares into electronic form are advised to open a Demat account. The process of opening a Demat account is relatively simple and can be done through authorized brokers or financial institutions.
This requirement also highlights the growing trend of dematerialization in the stock market, which is a crucial step toward ensuring a more secure and efficient trading process. Investors who have already opened a Demat account will see their bonus shares automatically credited. Those who haven’t must take action immediately to ensure smooth trading.
Taxation on Bonus Shares
Both Nepal Life Insurance and Aatmanirbhar Laghubitta will also distribute taxes on the bonus shares as per the prevailing government regulations. Investors are encouraged to check with their financial advisors to understand the tax implications.
Tax on bonus shares typically depends on various factors, including the holding period and the amount of dividend income generated. Shareholders should be mindful of these aspects when receiving and trading their bonus shares.
Impact on Investors
The listing of bonus shares from Nepal Life Insurance and Aatmanirbhar Laghubitta brings a few important benefits. First, it rewards existing shareholders by increasing their total shareholding without requiring them to purchase additional shares. This is a positive move for investors, especially smaller ones, as they get to increase their stake without additional investment.
Second, the availability of more shares in the market can potentially improve liquidity. The increased number of shares available for trade helps reduce volatility and creates more opportunities for market participants to buy and sell shares.
These actions also reflect the positive financial health of both companies. The distribution of bonus shares often signals that a company is performing well, as it has surplus earnings or capital to reward its shareholders.
Encouraging Corporate Goodwill
By issuing bonus shares, both Nepal Life Insurance and Aatmanirbhar Laghubitta demonstrate their commitment to their shareholders. This gesture is likely to enhance the trust and loyalty of investors, motivating them to hold on to their shares and continue supporting the companies in the long term.
Such actions also serve to increase investor confidence in the broader stock market, encouraging more participation. Investors are more likely to engage with companies that show a pattern of rewarding shareholders, as it increases the value of their investments.
Looking Forward: A Bright Future
The listing of bonus shares by Nepal Life Insurance and Aatmanirbhar Laghubitta marks a positive step for the Nepali stock market. These moves indicate that both companies are in a healthy financial position and are looking to expand their shareholder base.
Additionally, the trend of issuing bonus shares aligns with the broader goal of improving the liquidity and accessibility of stocks on the Nepali stock exchange. As these companies continue to grow, more investors may be encouraged to invest in their stocks, thus contributing to the market’s development.
The continued issuance of bonus shares by companies listed on NEPSE will likely boost investor confidence in the market. Companies that prioritize the welfare of their investors tend to see long-term positive effects, which can ultimately lead to better performance both financially and in the stock market.
Conclusion
In summary, the listing of bonus shares from Nepal Life Insurance and Aatmanirbhar Laghubitta is a promising development for both companies and their investors. As these shares become available for trading on NEPSE, shareholders will be able to benefit from increased holdings and liquidity. Investors are encouraged to ensure their Demat accounts are in order and consult with financial experts to understand the tax implications of their bonus shares. This move not only rewards shareholders but also strengthens the broader Nepali financial market.
For more: NEPSE Bonus Share Listing