Manushi Laghubitta (MLBS) & Shrijanshil Laghubitta (SHLB) Signs MoU for Merger

A merger agreement between Manushi Laghubitta Bittiya Sanstha Limited (MLBS) and Shrijanshil Laghubitta Bittiya Sanstha Limited (SHLB) has been finalized.

A preliminary memorandum of understanding has been signed for the merger/amalgamation of the two institutions.

The memorandum of understanding was signed by Padmasana Shakya, Chairman of MLBS and Rajkumar Shrestha, Chairman of SHLB.

A joint merger committee will be formed with 3/3 representatives from both organizations for the merger process. The aim is to complete the merger process within this financial year.

SHLB has been providing services to 41,948 families through 33 branches across the country, while MLBS has been providing services to 34,387 members through 36 branches in 14 districts.

Earlier this year, Shrijanshil Laghubitta had issued 3,93,750 units worth Rs 3.93 crore as Initial Public Offering to the general public. Whereas, Manushi Laghubitta had issued 3,93,750 units worth Rs 3.93 crore as Initial Public Offering to the general public last year. The paid-up capital of MLBS and SHLB is Rs. 10.93 Crores each. Hence, after the merger, the company will have a joint paid-up capital of Rs. 21.86 Crores.

Despite the merger agreement being approved by both companies, the share swap ratio is yet to be finalized. We also apologize for generating news last week based on the merging of MLBS and SHLB with a 1:1 swap ratio.

As of writing, the last trading price of MLBS and SHLB as of 16 March 2023 is Rs. 770 and Rs. 1500, respectively.