NEPSE has lifted the suspension on Kisan Laghubitta Bittiya Sanstha Limited (KLBSL).
The exchange had suspended the trading of the company due to inconsistency in the message that the company unveiled to the public.
The company previously issued an AGM notice calling the AGM on 29th Chaitra, 2077. Among the agendas of the AGM, there was a particular agenda to discuss the issuance of the right shares. The notice stated that the AGM would discuss issuing 1: 1 rights shares from the paid-up capital maintained as of now. However, in another notice that the company unveiled on the very next day, the rights issue was removed from the upcoming AGM's agenda. It was mentioned on the second announcement that the first notice had erroneous information.
NEPSE's suspension move was also triggered by the fact that the notice was unveiled at 3: 56 pm on Chaitra 09. News and notices that have the potential to impact a company's stock price must be unveiled before market hours, on the same day, or the day after. The company had an LTP of Rs. 1,689 during the suspension.
In its clarification, the company has revealed that they were unable to consult the official body regarding the rights offering and had to publish the AGM notice 21 days before the AGM date as per existing rules. Realizing that the company had violated the rule to first consult with the official body regarding the rights offering, the company had removed the agenda on the amended notice published on the very next day. As such, the company has apologized for its mistake and clarified that it did not intend to manipulate investor sentiment in any way.
It is important to note that the company is indeed looking forward to issuing rights offering to raise its capital structure.