NEPSE to cancel trade of Womi Laghubitta that took place after wrong adjustment; trading to resume after re-adjustment

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 the shares were traded.

Citing the issue, the higher official of NEPSE have decided to cancel the trade of WOMI that took place after wrong price adjustment. The trade that took place yesterday and today will be nullified. Subsequently, the authorities have decided to re adjust the price of shares and open trading of the security from Tuesday i.e. tomorrow.