The trading of Mega Bank’s shares to start from tomorrow after being frozen for 491 days; tentative price of opening stands at Rs. 312

The trading of Mega Bank Nepal Limited (MEGA) and Tourism Development Bank Limited (TDBL) had been halted on NEPSE from Magh 06, 2073 when both banks signed an agreement for merger on with a swap ratio of 100:95 (MEGA: TDBL). After the merger, the bank will have around Rs 10.5 billion paid up capital, 2.33 billion reserves, 1000 employees, 102 branches and 22 extension counters spread around all the provinces after the merger.

The last trading price of Mega and Tourism Bank were Rs 458 and Rs 427 respectively in Magh 2073 at a time when NEPSE was in a bearish mood with the index hovering at 1,470.

After the trading had halted at NEPSE, Mega Bank has already capitalized its 13.25% bonus shares and 65% right shares. On the other end, Tourism Development Bank has also capitalized 19.80% bonus shares and 100% right shares. Shareholders of both the institutions have already received the allotted right and bonus shares in their respective demat accounts. However, the shareholders hadn’t been able to trade the allotted shares.

So after starting the joint transaction of Mega and Toursim as Mega from Baisakh 30^th, 2075; the traders will finally be able to trade their shares in secondary market from tomorrow i.e Jestha 14^th, 2075. All the TBL shares have been dematerialized as Mega in investors’ demat accounts.

The LTP of Mega was Rs 458, so after adjusting 65% right shares, the trading will tentatively open at Rs 312 in NEPSE. If we were to adjust the 13.25% bonus too, the price will stand at Rs 279.88. However given the current market trend, the price is likely to fall below that too.