Shivam Cement Bonus Shares Credited to Demat Accounts
24th February 2026, Kathmandu
The industrial and capital market sectors in Nepal have reached a significant administrative milestone as Shivam Cements Limited (SHIVM) officially completed the deposit of bonus shares into the demat accounts of its eligible shareholders. Following the formal approval granted during the company’s 10th Annual General Meeting, the bonus units have been successfully credited to investor accounts as of February 24, 2026. This development marks the final execution phase of the dividend distribution cycle for the fiscal year 2081/82. Shivam Cements, a dominant player in the national construction materials industry, has utilized this corporate action to strengthen its paid up capital while rewarding its diverse base of retail and institutional investors. By moving these shares into the electronic depository system, the company has ensured that the new equity is immediately available for trading on the Nepal Stock Exchange (NEPSE).
Shivam Cement Bonus Shares
The technical details of the distribution were finalized during the 10th Annual General Meeting held on December 10, 2025 (Mangsir 25, 2082). During this assembly, the shareholders ratified a dual dividend proposal consisting of a 10 percent cash dividend, which includes the applicable dividend tax, and a 2.50 percent bonus share issuance. To determine eligibility for this payout, the company had established a book closure date on November 25, 2025 (Mangsir 10). Consequently, only those investors who held the stock until one day prior to the book closure were entitled to the additional shares and cash. This systematic approach ensures transparency in the identification of beneficiaries and maintains the integrity of the company’s shareholder records during the capitalization process.
The integration of the Shivam Cement Bonus Shares into the secondary market involved a rigorous listing and registration process. Before the shares appeared in individual beneficiary accounts, they were officially listed with the Nepal Stock Exchange and registered with CDS and Clearing Limited (CDSC). This regulatory step was successfully concluded on February 16, 2026 (Falgun 5, 2082). Once the listing was approved, the company initiated the electronic transfer, eliminating the need for physical certificates and reducing the risk of administrative errors. For the modern investor in Nepal, this electronic settlement means that their portfolio is updated automatically, allowing them to capitalize on market movements without the delays associated with manual paperwork or physical share delivery.
From an investment perspective, the issuance of bonus shares is a significant indicator of a company’s financial health and management confidence. Bonus shares are essentially a recapitalization of the company’s retained earnings or reserves. By converting these profits into equity, Shivam Cements is retaining cash within the business for future expansion or debt management while simultaneously increasing the number of shares held by each investor. While the immediate market price of the stock typically undergoes a downward adjustment to reflect the increased number of outstanding shares, the long term benefit for the shareholder lies in the potential for higher total dividends in the future and increased market liquidity. For a blue chip industrial stock like SHIVM, such moves often boost investor sentiment and support long term valuation stability.
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The operational performance of Shivam Cements Limited remains a critical factor for shareholders to monitor. As one of the largest cement producers in Nepal with its own limestone mine, the company is well positioned to benefit from the ongoing urbanization and infrastructure development projects across the country. The decision to distribute both cash and bonus shares reflects a balanced capital management strategy. While the 10 percent cash dividend provides immediate liquidity to shareholders to cover tax liabilities and earn a direct return, the 2.50 percent bonus share portion ensures that the company maintains its competitive edge by strengthening its equity base. This financial resilience is particularly important in a capital intensive industry where production capacity and market share are closely linked to capital availability.
The role of the dematerialization system in Nepal has been pivotal in the smooth execution of this corporate action. Since the transition to a fully digital depository, the time required between the approval of a bonus issue and the actual credit of shares has been significantly reduced. Investors can now verify their updated holdings through the Mero Share online portal or by contacting their respective Depository Participants. This efficiency reflects the increasing maturity of Nepal’s capital market infrastructure. For Shivam Cements, the timely credit of shares reinforces its reputation for transparent corporate governance and efficient shareholder communication, factors that are highly valued by both domestic and international investors.
Furthermore, the listing of these shares on NEPSE adds to the overall market capitalization of the manufacturing and processing sector. As Shivam Cements continues to expand its footprint in the domestic market, the increased number of shares will likely result in higher trading volumes, providing better exit and entry opportunities for large scale institutional investors. The company’s focus on maintaining a consistent dividend history is a clear signal to the market that it remains committed to shareholder wealth maximization. As the construction season in Nepal peaks during the second half of the fiscal year, investors will be looking for improved production numbers and revenue growth to justify the current market valuation of the newly issued shares.
In conclusion, the successful credit of Shivam Cement Bonus Shares to shareholder demat accounts is a testament to the company’s procedural efficiency and financial strength. By completing the listing and registration process with NEPSE and CDSC, Shivam Cements has ensured that its investors are duly rewarded and that their holdings are fully tradable. This move not only enhances the company’s paid up capital but also strengthens its bond with its thousands of shareholders across Nepal. As the company moves forward into the 2082/83 fiscal year, its commitment to professional governance and consistent returns will remain a benchmark for other industrial firms in the country. Eligible shareholders are encouraged to verify their demat statements and stay informed about the company’s future growth initiatives.
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