NEPSE adjusts price of Sahara Bikas Bank after one month of cancellation of merger with Sahayogi Bikas Bank
Tue, Feb 7, 2017 2:02 PM on Latest, Featured, NEPSE News, Stock Market,
Nepal Stock Exchange has adjusted the price of Sahara Bikas Bank Limited (SHBL) today. As per the notice published in NEPSE today, its adjusted price is Rs 462 for 8.5623% bonus share. However, the price should have been adjusted by mentioning 18% bonus share and 150% right.
Sahara Bikas Bank and Sahayogi Bikas Bank (SBBLJ) had signed a Memorandum of Understanding for merger on May 17, 2016. As a result, trading of both development banks was in halt in NEPSE since the same day. The last closing price of SBBLJ before merger was Rs 395 and, for SHBL was Rs 1,279.
SBBLJ’s price was adjusted on January 11, 2017 for 22% bonus share, and trading of SBBLJ had resumed on the same day. Mr. Ajit Kumar Jha, CEO of Sahara Bikas Bank, said that SEBON had asked for further clarification on the matter of bonus and right, so the trading was on hold until today. However, he stressed that NEPSE should have adjusted the price citing 18% bonus and 150% right share, and not 8.5623% bonus.
SHBL had issued 150% right shares and auctioned its unclaimed right shares last month from Poush 14 to Poush 21, 2073. As its LTP was Rs 1,279 before merger, bidders had bid as high as Rs 1,225 for the unclaimed shares. The cutoff price was just Rs 401.20.
Sahara Bikas Bank and Sahayogi Bikas Bank (SBBLJ) had signed a Memorandum of Understanding for merger on May 17, 2016. As a result, trading of both development banks was in halt in NEPSE since the same day. The last closing price of SBBLJ before merger was Rs 395 and, for SHBL was Rs 1,279.
SBBLJ’s price was adjusted on January 11, 2017 for 22% bonus share, and trading of SBBLJ had resumed on the same day. Mr. Ajit Kumar Jha, CEO of Sahara Bikas Bank, said that SEBON had asked for further clarification on the matter of bonus and right, so the trading was on hold until today. However, he stressed that NEPSE should have adjusted the price citing 18% bonus and 150% right share, and not 8.5623% bonus.
SHBL had issued 150% right shares and auctioned its unclaimed right shares last month from Poush 14 to Poush 21, 2073. As its LTP was Rs 1,279 before merger, bidders had bid as high as Rs 1,225 for the unclaimed shares. The cutoff price was just Rs 401.20.
