Know why NEPSE adjusted 20% instead of declared 30% bonus share of Miteri Dev. Bank?

Miteri Development Bank Limited (MDB) has recently declared 30 percent bonus share to its shareholders from the profit it earned during the last fiscal year 2072/73. The company has announced its upcoming AGM on Mangsir 11, 2073 and set book closure date on Kartik 18, 2073 which means investors holding Miteri Dev Bank’s share till Kartik 17 will be entitled for 30% bonus share offered by the company. But the confusion about the percent of bonus share aroused after NEPSE adjusted the price of Miteri Dev. Bank by 20%. Now the investors are confused whether they get 30% bonus share as declared by the company or not. Let’s see why Nepal Stock Exchange adjusted 20% instead of declared 30%bonus share of the company. Miteri Development Bank – Capital Structure Here, the existing paid up capital of MDB stands at Rs 21.12 crore and they have issued 50% right share worth Rs 10.56 crore. The company has declared 30% bonus share on existing capital of last FY 2072/73 i.e. Rs 21.12 crore excluding right share amount.  After the bonus on last year’s capital and subscription of 50% right share, MDB’s new paid up capital will be Rs 38.03 crore. Now the question arises why NEPSE adjusted 20% bonus share instead of declared 30% by the company. Since NESPE has already adjusted 50% right share before bonus; this means the paid up capital of MDB is Rs 31.69 crore after right share. However, the company declared 30% bonus share later. 30% bonus share is worth Rs 6.33 crore which will be 20% of existing new capital after right share.