Kalika Laghubitta’s 75% right share proposal; Is there a hint of “Insider Trading”?

Kalika Laghubitta has recently notified NEPSE about its 75% right share issuance. But has the company shown a hint of insider trading while doing this?

The company has stated that the meeting of BOD regarding the right issuance took place yesterday, but the time of the meeting has not been mentioned in the notice. Also, despite the meeting being conducted yesterday, the notice found its way to NEPSE only today.

If we see the performance of the shares of KMCDB in secondary market, it has been phenomenal for the past two days.  The company has been the top gaining company for the last two days hitting the positive circuit. The company has also recorded turnover of Rs 81.32 lakh during yesterday’s trading period.

It should also be noted that the price of KMCDB was Rs 754 on Mangsir 27, 2075 while its LTP for yesterday stands at Rs 1,104. The price has increased by 46% within 14 trading days.

It looks like the stock market has once again been prey of the insider trading. We can hope that NEPSE as well as SEBON tries to address the issue soon while the companies also need to develop independent behavior and help to maintain transparency in the stock market.