Book closure of CIT postponed

KATHMANDU, JUNE 27:

Citizen Investment Trust (CIT)’s book closure will be effective from June 28 instead of earlier announced date of June 25. CIT had determined June 25 as book closure date on the very day without allowing investors to take advantage of its dividend announcement.

In the annual general meeting (AGM), to be held on July 15, CIT had planned to seek approval for the 38.89 per cent stock dividend and 2.05 per cent cash distribution. Now, share buyers of CIT will be eligible to the proposed dividend only if they purchase the shares before June 28.

Since CIT’s decision was abrupt and did not inform investors on time, it added two more days for investors to trade the shares and avail the dividend announced. “We received complaints from investors and decided to extend the book closure date for two more days,” informed managing director of CIT Rishi Ram Gautam.

CIT, listed under the finance company subgroup, has 2.16 million units of shares at the stock exchange. CIT shares closed at Rs 1550 per unit today but it was traded at as high as Rs 1595 following the dividend announcement.

Gautam pointed out that CIT did not have a longer period to announce book closure due to the compulsion to hold the AGM within the end of the fiscal year.

Source: THT