CIT AGM today to endorse 50% bonus share; appoint directors
Wed, Jul 16, 2014 12:00 AM on AGM/Special AGM,
ShareSansar, July 16:
Citizen Investment Trust (CIT) is holding its Annual General Meeting today in Kathmandu.
The 19th AGM of the state-run company being held at Nepal Academy at Kamaladi is endorsing 50 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.
It may be noted that CIT has already 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.
