Charm towards HAMA scrips increases in secondary market; to merger with A or B class financial institution & issue 1:1 right shares

Charm towards the scrips of Hama Merchant and Finance Company Limited (HAMA) has increased in the secondary market.  HAMA has constantly hit circuit from the last four trading days. Its last trading price stands at Rs 330 as on May 9, 2016. HAMA has been hitting circuit at Nepse due to its serious merger talk with Mega Bank Nepal Limited (MEGA)  and Nepal Bangladesh Bank Limited (NBB). Bhakta Bahadur Karki, CEO of Hama Merchant and Finance Limited said, “we are holding merger talks with Mega Bank, Nepal Bangladesh Bank and couple of Development Banks.” HAMA has not reached any conclusion regarding the merger yet, but it will only merge with A class or B class financial institution, he added. He further said that the bank will be also be issuing 1:1 right shares. The process required for issuance of right shares is being carried out. HAMA had a net profit of Rs 2.16 crore in Q3 of the ongoing fiscal year. The company’s paid up capital is at Rs 20 crore and its reserve stands  at Rs 8.46 crore in Q3. HAMA’s annualized EPS stands at Rs 14.43 and net worth per share is priced at Rs 131.02. HAMA Merchant has provided 10.50 percent bonus shares from the net profit earned in the last fiscal year.