Everest Insurance proposes only 20% stock dividend for 5 years; paid up to reach Rs 12.15 crore

Everest Insurance Company Limited (EIC) has decided to distribute 20 percent stock dividend to its shareholders. The decision is subject to approval from Insurance Board and the company’s upcoming Annual General Meeting (AGM). As per the notice published on Nepal Stock Exchange (NEPSE) today, the BOD meeting of the company has proposed 20 percent stock dividend to its shareholders from the net profit it earned in the fiscal years FY 2068/69, 2069/70, 2070/71, 2071/72 and 2072/73. As per an official of EIC, financial reports of the above five fiscal years have been audited and the upcoming AGM for these five years will endorse the bonus shares. It had last conducted its AGM on April 24, 2012 for the FY 2067/68. EIC had earned net profit of Rs 2.07 crore in the second quarter of fiscal year 2073/74 as per unaudited report. Its paid up capital remains at Rs. 10.12 crore. After distributing 20 percent bonus share, its paid up capital will rise to Rs. 12.15 crore. As per Insurance Board’s directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, EIC should increase its capital by a further 722%.