National Microfinance (NMFBS) Amends Bonus Dividend of FY 2078/79; What is the New Bonus Dividend Rate?

National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) has amended the bonus dividend from previous 38.5% to 34.45%.

NMFBS had proposed a 38.5% Bonus Dividend for the fiscal year 2078/79. The 141st meeting of the board of directors held on Magh 9 had proposed a 38.5% bonus from the paid-up capital for the fiscal year 2078/79. The paid-up capital of the company is Rs. 58.66 Crores. Thus, the bonus shares amounting to Rs. 22.58 crores had been proposed by the company.

However, this dividend would be distributed only after approval by Nepal Rastra Bank and endorsement by the company's upcoming AGM.  According to the decision of the 143rd meeting of the Board of Directors held at Falgun 18, the company has amended the dividend after approval from Nepal Rastra Bank. The same need to be endorsed now by the upcoming Annual General Meeting of the company.

Likewise, the paid-up capital of the company is Rs. 58.66 Crores, the company has amended the bonus dividend from previous 38.5% to 34.45% which will be around Rs 20.21 Crores. Hence the paid up capital upon adjustment of newly proposed bonus share would be Rs 78.87 crore. 

National Microfinance Laghubitta Bittiya Sanstha Limited acquired Mahila Sahayatra Laghubitta, and the joint transaction started from 30th Ashar, 2078. In that regard, no separate amount has been set aside for dividend tax purpose because shareholders who were held before that date are eligible for a tax exemption on dividends for two years from the date of receipt. Hence, shareholders who purchased shares after that date will have to pay the dividend tax themselves.

National Microfinance Laghubitta and Summit Laghubitta Bittiya Sanstha Limited (SMFDB) also signed a Memorandum of Understanding (MoU) for the merger on Ashwin 26, 2079.

For the merger between NMFBS and SMFDB, the share swap ratio of 100:82 has been fixed i.e., for every 100 units of Summit’s shares, the shareholders will get 82-unit shares of National Micro finance.