Kalika Power Share Trading Suspended as the Company Declares Dividend Distribution During Business Hours

According to the official notice of Nepal Stock Exchange (NEPSE), the transaction of Kalika Power Company Limited (KPCL) has been stopped because it published a notice stating 15.7895 percent dividend would be issued to the shareholders while the shares were being traded.

The letter regarding dividend declaration of Fiscal year 2078/79 by Kalika Power was received by Nepal Stock Exchange at 11:16 AM during business hours today.

According to the provision in Regulation 22(1)(d) of the Securities Listing Regulations, 2075, if notices, information and decisions affecting securities prices are created, such notices, information and decisions must be submitted to NEPSE on the same day or the next day before the opening of business.

Since, KPCL contradicted the rules outlaid by NEPSE, the trading of the securities of the said company has been suspended. Likewise, within 3 (three) working days, the company is required to submit an explanation in this regard.

The company has declared bonus shares worth Rs. 10.35 Crores which will be 15% of the capital of Rs. 69 Crores and a cash dividend of 0.7895 percent worth Rs. 54.47 Lakhs for tax purposes.

Likewise, the Last Trading Price (LTP) of KPCL as of Dec 22 is Rs. 327.70