Investors in the insurance sector have some good news to celebrate this week. Prabhu Insurance Limited has officially proposed a dividend for the last fiscal year (2080/81), continuing its track record of rewarding shareholders.
Following a Board of Directors meeting held on Falgun 17, the company has decided to distribute a total dividend of 9.1579% based on its current paid-up capital of Rs. 1.70 billion.
The Dividend Breakdown
The proposed payout is a mix of both bonus shares and cash, structured as follows:
- Bonus Shares: 8.7% (worth approximately Rs. 147.98 million)
- Cash Dividend: 0.4579% (worth approximately Rs. 7.78 million, primarily for tax purposes)
- Total Dividend: 9.1579%
By issuing bonus shares, Prabhu Insurance is not only rewarding its investors but also strengthening its paid-up capital base, which is a vital move in the current regulatory environment for non-life insurance companies in Nepal.
As per standard regulatory procedure, this dividend is not yet “set in stone.” There are two final hurdles before the rewards hit your portfolio:
- Approval from Nepal Insurance Authority: The regulator must first review and green-light the proposal.
- Annual General Meeting (AGM): Once the Authority approves the proposal, it will be presented at the company’s upcoming AGM for final endorsement by shareholders.
Market Outlook
Prabhu Insurance’s announcement comes at a time when investors are closely watching the financial health of the insurance industry. This 9.15% payout reflects the company’s commitment to maintaining a steady return even amidst evolving market dynamics.
Keep an eye on the Book Closure Date, which will be announced soon. Only shareholders holding the stock before that date will be eligible for these dividends.
Read Latest Share Market News
