Bishal Bazar Company Limited, the largest company in terms of market capitalization in the Nepal Stock Exchange (NEPSE) list, is set to hold its first annual general meeting (AGM) in 11 years.

This time, the company's investors will also receive dividends after a decade. The company has proposed a 14 percent cash dividend for its 34th AGM. Additionally, it has already distributed a 14 percent interim cash dividend to the Government of Nepal this year.

According to the Companies Act, 2063, every public company must hold its first AGM within one year of receiving a trading license. Thereafter, AGMs must be held within six months of the end of each fiscal year. However, despite 98.96 percent government shareholding, Bishal Bazar Company is holding an AGM after nearly 11 years.

A board of directors meeting on January 25 decided to hold the 34th AGM on February 24 to approve the annual report and financial statements for fiscal years 2013/14 to 2018/19.

The company's 33rd AGM was held 11 years ago, on 28 March, 2014. At that meeting, the company approved financial statements up to fiscal year 2012/13. Now, the company is preparing to hold AGMs for the previous six fiscal years.

Board of Directors member Radha Pokharel stated that the company is working to complete audits for fiscal years 2019/20 to 2023/24 and aims to hold the AGM within the current fiscal year.

Explaining the long delay, Director Pokharel cited an incomplete board of directors in previous years. However, she emphasized that the board is now working toward making the company more organized. She also expressed her commitment to restoring investor confidence, given that the company currently holds the highest market capitalization in Nepal's secondary securities market.

Despite the resumption of dividend distribution after a decade, the proposed 14 percent dividend is significantly lower than previous payouts.

A senior official from the company's management department stated that in the past, the company distributed a 100 percent cash dividend from profits up to fiscal year 2005/06. Later, it distributed a 70 percent cash dividend from profits up to fiscal year 2009/10.

The upcoming AGM, being held after 11 years, will also appoint auditors for fiscal years 2023/24 and 2024/25.

Additionally, the meeting will discuss of approving allowances and benefits for the board of directors for fiscal year 2018/19, appointing a new director to replace Rajendra Kumar Baidya, who has resigned, approving the company’s share capital of Rs 4.1 billion, and amending the company’s Memorandum of Association and Articles of Association.

To facilitate the AGM, the company will implement a one-day book closure on February 21

Company's Share Price Declines

Bishal Bazar Company’s share price fell on Tuesday, following the announcement of a lower-than-expected dividend proposal.

The stock, which had been on an upward trend, saw a decline as investors reacted with disappointment. After rising continuously for two trading sessions to Rs 5,700 per share, the price dropped by Rs 60 to Rs 5,640 on Tuesday.

As of Tuesday, the company’s total market capitalization stood at over Rs 226.16 billion. That day, 2,119 shares worth Rs 1.926 billion were traded.

Currently, a total of 41 million shares are listed on the secondary market, comprising 39.681 million shares held by the company’s founders and 418,967 shares available to the general public.

On November 26, 2024, an additional 39.6 million government-owned shares were added to the secondary market, remaining under the control of the company’s promoters.