National Microfinance (NMFBS) Proposes 38.5% Bonus Dividend for the FY 2078/79; Share Trading Halted Due to the Dividend Declaration During Trading Hours

National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) has proposed a 38.5% Bonus Dividend for the fiscal year 2078/79.

The 141st meeting of the board of directors held on Magh 9 has proposed a 38.5% bonus from the paid-up capital for the fiscal year 2078/79. The paid-up capital of the company is Rs. 58.66 Crores. Thus, the bonus shares amounting to Rs. 22.58 crores have been proposed by the company.

Note that the dividend will only be distributed after approval by Nepal Rastra Bank and endorsement by the company's upcoming AGM.

National Microfinance Laghubitta Bittiya Sanstha Limited acquired Mahila Sahayatra Laghubitta, and the joint transaction started from 30th Ashar, 2078. In that regard, no separate amount has been set aside for dividend tax purpose because shareholders who were held before that date are eligible for a tax exemption on dividends for two years from the date of receipt. Hence, shareholders who purchased shares after that date will have to pay the dividend tax themselves.

National Microfinance Laghubitta and Summit Laghubitta Bittiya Sanstha Limited (SMFDB) also signed a Memorandum of Understanding (MoU) for the merger on Ashwin 26, 2079.

For the merger between NMFBS and SMFDB, the share swap ratio of 100:82 has been fixed i.e., for every 100 units of Summit’s shares, the shareholders will get 82-unit shares of National Micro finance.

On the other hand, according to the official notice of NEPSE, the transaction of NMFBS has been stopped because it published a notice stating that 38.5 percent of bonus dividends would be issued to the shareholders while the shares were being traded.

According to the provision in Regulation 22(1)(d) of the Securities Listing Regulations, 2075, if notices, information and decisions affecting securities prices are created, such notices, information and decisions must be submitted to NEPSE on the same day or the next day before the opening of business.

As of writing, the LTP of the company stands at Rs. 2,199.