NT AGM approves 35 per cent cash dividend

The second annual general meeting (AGM) of Nepal Doorsanchar Company Ltd -- popularly known as Nepal Telecom (NT) -- has approved 35 per cent cash dividends to its shareholders here today.
The NT board last month has proposed 35 per cent cash dividends to the shareholders.
The company has, last fiscal year, registered Rs 10.18 billion net profit -- an increase by 31 per cent over last year's turnover, said the company. "The per share income has also incresaed to Rs 67.85 that is also an increase of 28 per cent," said the NT, which has been listed under the Class-A companies at the Nepal Stock Exchange (Nepse).
"NT's teledensity has increased to 17.84 telephone lines per 100 persons," Sushil Ghimire, NT chairman said, addressing the shareholders. "We have extended our PSTN (land line) services in all the 75 districts headquarters," he said, adding that GSM and CDMA service of NT is also available across the country.
Registered on 2060-10-22 under Company Act, 2053, the then Nepal Telecommunications Corporation (NTC) was dissolved and all assets and liabilities were transferred to Nepal Telecom (NT) with effect from April 13, 2004. The company had floated its shares under the disvestment programme of the government and called the bid for its shares quoting Rs 600 minimum after adding Rs 500 premium to the face value of Rs 100 for each unit. However, investors have quoted a maximum of Rs 2,550 to the lowest of Rs 600 for a unit of share.
As part of the disvestment and privatisation plan, the government had sold NT's 10 per cent shares -- five per cent to the public and five per cent to the staff. The staff were offered the shares at a subsidised rate of Rs 90 per unit.
The NT, according to the Ministry of Finance's divestment plan, floated 75,00,000-unit of shares -- that is five per cent of the total -- in the first phase to the public. However, due to various reasons, it was under-subscribed to only above 53,00,000-unit shares.
Last year, in the first ever AGM, it had distributed 25 per cent cash dividends. But with increasing profits, NT has decided to distribute 35 per cent cash dividends from last year's profits.
NT's share listing was the largest ever share listing worth Rs 15 billion in the domestic secondary market.