Wean Nepal Laghubitta Amends Dividend From Fiscal Year 77/78; Know Why NEPSE Suspends Trading?

Wean Nepal Laghubitta Bittiya Sanstha Limited (WNLB) had proposed an 11.05% dividend for the fiscal year 2077/78. However, as per the notice issued by microfinance on 17 May 2022, the company has decided to amend the dividend to the shareholders from the fiscal year 2077/78.

As per the notice, microfinance is planning to distribute dividends amounting to Rs. 71.03 lakhs; segregated towards bonus shares worth Rs. 67.65 lakhs and a cash dividend worth Rs. 3.38 Lakhs. Hence, the total proposed dividend (revised) of microfinance is 9.83% which consists of 9.33% bonus shares, and 0.50% cash dividend.

Since the merger of Nepal Seva and WEAN Nepal Laghubitta, the paid-up capital of the microfinance stood at Rs. 7.24 crores at the end of the fiscal year 2077/78. Now the company has stated that the capital will be increased to Rs. 7.91 crores owing to the inclusion of the proposed bonus shares of the company.

The dividend shall be distributed only after the conclusion of the 7th AGM of the company which is decided to be held at Indravati Samudik Seva Kendra, Phatakshila-8, Sindhupalchowk on Friday, 20th Jestha, 2079 starting from 11 a.m. 

The microfinance has also issued a notice regarding the decision to close the shareholder registration book (book closure) starting from Jestha 3, 2079 to Jestha 20, 2079.

However, as per the rules governed by SEBON, if the company wants to close its books, it must send a notice to NEPSE at least 7 days in advance of the book closing date. In this case, microfinance sent their notice on the 30th of Baishakh, 2079, which is in violation of the rule. Hence, the Nepal Stock Exchange (NEPSE) has suspended trading of WNLB shares. Also, Wean Nepal Laghubitta has to provide a satisfactory explanation to Nepse within three days.