Kathmandu: The meeting of the board of directors (BODs) of Asian Life Insurance Co. Ltd.(ALICL) has proposed an 8.94 percent bonus to its shareholders for the last financial year 2078-79.
The meeting of the BODs held today at Kathmandu proposed to distribute 8.5 percent stock dividends and 0.44 percent cash dividends.
ALICL is the second life insurance company to get its financial report approved by the Nepal Insurance Authority for FY 2078-79. Earlier the financial report of IME Life was approved by the Authority for the last FY. The shareholders will get stock dividends worth Rs. 247.1 million and cash dividends worth Rs.13 million.
ALICL’s paid-up capital is Rs. 2.9 billion. After the approval and distribution of the proposed dividends, its paid-up capital will reach Rs. 3.14 billion. To meet the regulatory requirements, the company needs to raise an additional Rs. 1.86 billion from its shareholders. It’s almost impossible for the company to maintain a minimum of Rs. 5 billion paid-up capital by the end of Chaitra 2079(Mid April 2023).
For the previous FY 2077-78, the company had distributed a total of 15.26 percent dividends to investors including 14.5 percent stock dividends. Stock dividends are supposed to be more attractive for the shareholders as a better return can be earned from the trading of the stock in the secondary market.
