Nepal Re Approaches SEBON for Listing of 16.5 pc Bonus Shares

Kathmandu: Nepal Reinsurance( Nepal Re) has applied to the Securities Board of Nepal(SEBON) for the listing of 16.50 percent bonus shares. According to Shankar Rayamajhi, CEO of Nepal Re, an application has already been submitted to SEBON.

The company’s sixth annual general meeting held on 6 January 2022, had passed a resolution of 2.50 percent cash dividend and 16.50 percent bonus shares. The shareholders have complained that the shares have not been listed even five months after the general meeting.

The company had distributed the dividend from the profits and reserve profits of the fiscal year 2076/77(2019-20).

The Government of Nepal has the largest share of 44.039 percent in Nepal Re. Therefore, the GoN is be the biggest beneficiary of this bonus and dividend. The GoN has received bonus shares of Rs. 726.6 million, Rs. 110 million in cash. Some of the cash will be deducted for tax purposes.

The bonus shares will be credit to the shareholders’ account only after registering with the SEBON, and listing in Nepal Clearing House Limited(NCHL) and Nepal Stock Exchange(NEPSE).

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