31st January 2025, Kathmandu
Shikhar Insurance Company has announced a 10.52% dividend for its shareholders based on the net profit of the fiscal year 2080/81. The decision was made during the Board of Directors’ meeting held on 28 January.
Shikhar Insurance Bonus Share Dividend
The proposed dividend includes 10% bonus shares and a 0.52% cash dividend for tax purposes. This announcement reflects the company’s strong financial performance and commitment to shareholder returns.
Dividend Proposal and Approval Process
Before distribution, the dividend proposal requires approval from the Insurance Board of Nepal (Beema Pradhikaran). Additionally, it must be endorsed at the company’s Annual General Meeting (AGM). Once these approvals are secured, shareholders will receive their respective benefits.
The approval process is standard for listed insurance companies in Nepal. Regulatory bodies ensure compliance with financial policies before dividends are distributed. Shikhar Insurance remains confident that its proposal will be approved without complications.
Total Dividend Worth Rs. 27.94 Crore
The company has allocated Rs. 27.94 crore for dividend distribution. This amount will be used to issue bonus shares and disburse cash dividends to shareholders.
The company’s financial strength enables it to provide consistent returns to investors. Over the years, Shikhar Insurance has maintained a stable growth trajectory, positioning itself as a reliable player in Nepal’s insurance market.
Current Share Price and Market Position
As of now, Shikhar Insurance’s share price stands at Rs. 795 per unit. The stock has shown resilience despite market fluctuations. Investors consider the company a strong long-term investment option, given its steady financial performance and dividend history.
Market analysts view Shikhar Insurance as a key player in Nepal’s insurance sector. Its ability to generate profits and distribute dividends demonstrates effective business strategies and risk management.
Impact on Shareholders and Future Outlook
The announcement brings positive news for shareholders, who will benefit from increased holdings through bonus shares. The 0.52% cash dividend will also provide some liquidity, covering tax obligations.
Shikhar Insurance aims to enhance shareholder value through strategic growth and financial discipline. The company continues to expand its market presence, offering comprehensive insurance products and maintaining customer trust.
Looking ahead, industry experts expect Shikhar Insurance to maintain its growth momentum. The insurance sector in Nepal is evolving, and companies like Shikhar are well-positioned to adapt to changing market dynamics.
Final Steps for Dividend Distribution
The final dividend distribution will take place after obtaining the necessary approvals. Shareholders should stay updated on the AGM schedule and regulatory clearance.
Shikhar Insurance remains committed to delivering strong financial performance and rewarding its investors. The company’s ability to provide consistent dividends reinforces its market reputation and trust among shareholders.
For more: Shikhar Insurance Bonus Share Dividend
