Why Is Samaj Laghubitta’s IPO Still Not Traded on the NEPSE?
Samaj Laghubitta Bittiya Sanstha Limited (SAMAJ), a microfinance company in Nepal, has yet to trade on the Nepal Stock Exchange (NEPSE) three years after issuing its initial public offering.
SAMAJ issued 86,000 units worth Rs 86 lakh in August 2020, with 8,070 applicants being allotted 10 units each via lottery, and the remaining 5.39 lakh applicants receiving no shares.
However, none of the lucky applicants can trade their shares on the secondary market as the company is not yet listed on NEPSE.
SAMAJ had previously signed a merger agreement with Swastik Laghubitta (SWSLBSL), but the agreement was terminated before the shares could be opened for trading on the secondary market.
SAMAJ’s CEO, Mr. Kishori Mahato, had stated three years ago that the shares would be tradable once the company coordinated with Nepal Rastra Bank to obtain a “de-merge” letter.
However, the company has been unable to obtain the document, preventing it from meeting shareholders’ fundamental right to information.
Why Is Samaj Laghubitta’s IPO Still Not Traded on the NEPSE?
However, SAMAJ has yet to do so, and the company has not provided any updates or explanations to its shareholders. When contacted for comment, SAMAJ was unavailable.
In summary, SAMAJ’s IPO shares remain untraded on the secondary market three years after the offering. With the company’s inability to obtain a “de-merge” letter preventing it from meeting shareholders’ right to information.
NEPSE has stated that it will permit trading only after SAMAJ files the merger termination letter from the central bank. But the company has not provided any updates or explanations to its shareholders.
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