CIT AGM on July 16; 50% bonus share in offing; book closure on July 1

ShareSansar, June 23:

Citizen Investment Trust (CIT) will hold its Annual General Meeting on July 16 in Kathmandu.

Issuing a notice today, the state-run company has stated that its 19th AGM will endorse percent bonus shares plus cash dividend equivalent to the tax on the bonus shares to the shareholders from the net profit it posted in the last fiscal year 2069/70.

Though the AGM notice has not disclosed the percent of the bonus shares, highly place source at CIT told ShareSansar that it plans to endorse 50 percent bonus shares this time around.

CIT has also announced the book closure for the AGM from July 1. It means that only those who already hold the shares of the company by June end will be entitled to the bonus shares.

The AGM will also endorse a proposal to appoint a representative each from the directors and the shareholders.

CIT had offered 40 percent bonus shares to the shareholders last year.
According to stock analysts, CIT is probably the best among the blue-chip companies of Nepal.

As prominent stock analyst and investor Jeevan Basnet notes, provident funds are automatically deposited at CIT—that to the tune of Rs 5 to 7 arba.  Hence, CIT has no issue when it comes to fund.

On top of that CIT’s paid-up capital stands at only Rs 30 crore, and they are planning to shore it up to Rs 1 arba. Hence, we can expect bonus share every year.

Another good thing with CIT is that they have open-ended mutual funds. Whenever any IPO is floated, a chunk of the primary shares are allotted to CIT. On top of that they are investors in some of the big projects, including Upper Tamakoshi.

“Hence the company is growing every day,” says Basnet.

Altogether Rs 18 crore profit has been shown in the latest balance sheet concerning the shareholders, up from Rs 12 crore.  It has Rs 6 crore in the reserve from the previous year. Hence it adds up to Rs 20 crore.

Now since CIT has a paid-up of Rs 30 crore, even if it pledges 50 percent dividend this time around, it can still set aside Rs 9 crore in reserve.

That is not all. CIT is one of a very few Nepali institution, which can make direct investment in the Indian stock exchanges as a FII.