Finally NTC endorses 46% dividend (Rs 690 crore); AGM on July 8

ShareSansar, June 4:

Nepal Doorsanchar Company Limited has finally announced its Annual General Meeting on July 8 to formally endorse 46 percent cash dividend to the shareholders from the net profit it posted in the last fiscal year 2069/70.

Issuing an AGM notice today, the state-run telecom giant has stated that the AGM to be held at the Tribhuwan Army’s Club will also elect a public director.

It may be noted that the cash dividend Nepal Telecom is pledging this time around is 2 percent lesser that what it had offered to the shareholders for the fiscal year 2068/69.

This despite the fact that the company is capable of distributing more than 100 percent dividend, as its share capital stands at Rs 15 arba and its reserve and surplus stands at more than Rs 40 arba. 

Nepal Telecom had earned Rs 11.31 arba in profit after tax in the last fiscal year, down from Rs 11.60 arba in the previous fiscal year 2068/69.

Earlier this year, the telecom company had earmarked Rs 61 crore 24 lakh 42 thousand for paying out dividends after setting aside the amount to be paid to the government.

At present, Nepal Telecom has a paid up capital of Rs 15 arba.
 
Nepal Telecom, with its growth more or less stagnant for the past few years largely owing to growing competition from the private sector, is seeking to bring in a strategic partner, to rejuvenate the growth.

In March it formally initiated the process to bring in a strategic partner for better performance of the state run telecommunication giant.

The highest taxpayer company has already issued a tender notice to hire consultants to assist Nepal Telecom to find a strategic partner.

Some Indian and European companies have already expressed willingness to become NT’s strategic partner.

The consultants—Nepali or foreigner—with more than five years of experience in the telecommunications sector can submit their proposal.

The government, which holds 91 percent share in the company, is planning to hand over 25 to 30 percent of its stakes to the strategic partner.

Citizen Investment Trust (CIT) holds 0.03 percent of the company’s shares while ordinary shareholders and the company staff hold 3.97 and 4.5 percent shares respectively.

According to NT’s Managing Director Anup Ranjan Bhattarai, they are looking for such a strategic partner, which has extensive experience in the field of Information Technology besides previous experience of working as a strategic partner for a telecom company.

NT, which is also the largest company in the only stock market of the country in terms of share volume, has been mulling over strategic partnership to bring in the latest in the telecom sector to upgrade and expand its service to the people.