Manjushree Finance lowers its cash dividend to 2.9% from 9%; Absence of corporate governance hampers the investors

Manjushree Finance Company Limited (MFIL) has amended its proposed dividend for the FY 2074/75.

As per the amended notice published in NEPSE, the finance company will now provide 2.9% cash dividend for its shareholders. The company had previously proposed 9% cash dividend for the shareholders.

When enquired about the issue, the finance company replied by stating that Nepal Rastra Bank only approved 2.9% cash dividend to be distributed.

MFIL recently published its AGM notice which mentioned the cash dividend as 9%. However, the company had already received the approval from NRB for distribution of only 2.9% cash dividend.

Nepalese Stock Market has not been giving anything to lure the investors rather such acts of inconsistency and irresponsibility push the investors away from the market.

The investors who had purchased the stock of MFIL after the declaration of 9% dividends must be having a hard time right now. MFIL’s shares are selling at around Rs 124 in the secondary market, so the return of 9% cash dividend would have been a great deal for the investors. But after the dividend has dropped to 2.9%, the investments of the investors will not be paying as much as they were told to.

Apart from this, the finance company has also showed carelessness in communicating the public information. The company must have received the decision of Nepal Rastra Bank before publishing the AGM notice. But the company published its amendment notice today in NEPSE.

The absence of corporate governance in Manjushree Finance has directly affected the investors. Now, we will need to wait and see what kind of action will be taken by the regulatory bodies.