Issue emerges with price adjustment of Womi Laghubitta Bittiya Sanstha Limited; what was the blunder made?

Nepal Stock Exchange Limited (NEPSE) had published a notice today regarding the price adjustment of 25% bonus shares of Womi Laghubitta Bittiya Sanstha Limited (WOMI). As per the notice, the price was adjusted to Rs.856 per share.

Initially, WOMI had proposed 20% bonus shares on current paid up capital i.e. capital after the adjustment of right shares and shares of Nagarik Laghubitta (Rs.25.25 Crore). Further events led the company to distribute 25% bonus shares on the pre-adjustment paid up capital i.e. Rs.10.10 Crore. The company was actually distributing only 10% bonus shares on the current paid up capital (Rs.25.25 Crore).

However, on the LTP of Rs.1070 per share, 25% bonus adjustment was made to arrive at price of Rs.856 per share. Since, the company has only distributed 10% bonus shares on the current paid up capital, 10% bonus adjustment should’ve been made to the LTP to arrive at Rs.972.73 per share. Regular trading opened at Rs.856 per share, and still the shares are being traded.

On enquiring about the same at NEPSE, the officials from listing department said that whatever was sent by the company was uploaded. Acknowledging that the above mentioned is actually an issue, they said that the higher officials are currently discussing on the matter to obtain a viable solution to the issue.