Prabhu Mahalaxmi Life Insurance Company Proposes 10.526% Dividend And 7% Right Shares

Prabhu Mahalaxmi Life Insurance Company Limited (PMLI) has proposed a 10.526% dividend and 7% right shares for the fiscal year 2079/80.

The 16th Board of Directors meeting on Bhadra 7 has decided to distribute a 10% bonus share and a 0.526% cash dividend (including tax) has been proposed.

The company has resolved to issue 7% right shares after adjusting for the allocation of 10.526% bonus shares from the existing paid-up capital of Rs. 4.29 Arba. This adjustment will result in an enhanced paid-up capital, reaching Rs. 4.72 Arba after incorporating the bonus shares.

Despite issuing bonus shares, the company is expected to face a capital deficit falling short of the Rs. 5 Arba capital requirement mandated by the Nepal Insurance Authority (NIA) for life insurance companies. To address this shortfall, PMLI has proposed issuing 7% rights shares, following the adjustment of bonus shares, to meet the Rs. 5 Arba capital requirement established by the NIA.

The dividend is subject to approval from the Nepal Insurance Authority, and the upcoming AGM.

As of writing, PMLI has its last trading day's closing at Rs. 693.00.