Share Trading of Sana Kisan (SKBBL) and RMDC Laghubitta Resumed from Today

Sana Kisan Laghubitta Bittiya Sanstha Limited (SKBBL), a leading microfinance institution had decided to go for the merger route to enhance its capital. The company decided to merger with RMDC Laghubitta Bittiya Sanstha Limited (RMDC), another leading microfinance of Nepal.

Due to their merger process, both microfinance companies' share trading was suspended on September 16, 2022. According to a notice published by the Nepal Stock Exchange (NEPSE), share trading in both of these companies has resumed as of today, November 24, 2022.

Securities Board (SEBON), enforcing a directive on listed companies engaging in mergers and acquisitions passed a requirement that share transactions shall be halted for a maximum of 15 working days after the combined entity commences a joint business transaction. The board has granted the post-unification period of time due to the procedures of re-registration, reconciliation, dematerialization, and listing of the shares.

The company currently has to halt share transactions once the unification process has begun. In order to prevent any out-of-the-ordinary clearing and settlement of share trading for listed company that were engaged in merger or acquisition activity, SEBON had maintained the rule.

SKBBL and RMDC are the first microfinance entities whose share trading has been resumed despite the merged company not yet being listed on NEPSE. Also, the share trading of only ordinary shareholders of these companies has been resumed.

The opening price of SKBBL as of 24th November is Rs. 1,038 whereas the same for RMDC is Rs. 850.