Alliance AGM on April 18 to offer 13.6% bonus share, 55% right within Baisakh

ShareSansar, March 28:

Alliance Insurance Company Limited has announced its 18th Annual General Meeting on April 18.

As ShareSansar had been reporting over the past few days, a meeting of the company’s BoD has formally pledged 13.16 percent (12.5 percent bonus shares and 0.66% more to adjust the taxes) to the shareholders from the net profit it posted in the last fiscal year.

It may be further noted that the company is also soon distributing 55 percent right shares to meet the paid-up capital target of Rs 25 crore by the end of the current fiscal year, according to the company officials.

The company’s last AGM had endorsed the right shares.

Though sources at NMB Capital and the company had stated that Alliance will announce book closure for both the bonus and right shares together, the AGM notice published today has apparently announced book closure only for the bonus shares on April 3.

"We will also distribute the right shares within Baisakh (by mid-May) and annonce a separate book closure for the same," Alliance's CEO Yogesh Bhakta Bahadur Shrestha told ShareSansar.

He further said that the right shares will be given as per Rs 16.23 crore paid-up capital of the company, and the paid-up will rise to Rs 27.18 after adjusting both bonus and right shares.

It may be noted that the insurer had posted a net profit of Rs.7.63 crore in the last fiscal year 2069/70.

The dividend being proposed by Alliance for the last fiscal year is higher than it has offered for the previous fiscal year, which stood at 10 percent bonus share.

The AGM to be held at the United World Trade Center, Thapathali in Kathmandu will also elect three directors from among the promoter shareholders, besides three public directors and one director to be appointed by the CIT.

Alliance’s EPS stands at an impressive Rs 47 and the net worth per share stands at Rs 210, according to its balance sheet of the last fiscal year.