Share trading of Manjushree Finance resumed after 75 days in NEPSE

Almost after hiatus of 75 days, NEPSE has resumed the stock trading of Manjushree Finance Limited (MFIL) from today. Earlier, due to the absence of corporate governance the finance company scrip was put in suspension by NEPSE since 12^th December, 2018 onwards.

MFIL had misinterpreted dividend based information to its shareholders. Even though NRB had disapproved 9% cash dividend proposal of the company; MFIL had mentioned this in its its 11^th AGM notice agenda published on 10^th December, 2018.

The investors who had purchased the stock of MFIL after the declaration of 9% dividends must have had hard time then. MFIL’s shares were available at around Rs 124 in the secondary market, so the return of 9% cash dividend would have been a great deal for the investors then. But after the dividend has dropped to 2.9%, the investments of the investors were not paying as much as they were told to.

The finance company had shown carelessness in communicating the public information. The company must had received the dividend disapproval decision of Nepal Rastra Bank before publishing the AGM notice. However, the company published its dividend amendment notice only a day after on 11^th December, 2018 in NEPSE website.

The whole incident led huge opportunity and money loss to the shareholders of the company. Its LTP in NEPSE stands Rs 115 per unit.