In this post we’ll take a look at upcoming book closure in Nepal. We’ll also see how you can trade during the book closure, so let’s get started.
Book Closure Date is generally the cut-off date using which companies determine which investors will get dividend for that period. So if you have bought shares before the book closure date, you are eligible to get the dividend of that company. So if you bought shares of a company just 1 day before book closure, you’ll still be eligible to receive dividend of that company, and if you sell your shares just 1 day after the book closure, you’ll still be eligible for the dividend of that company.
This is the reason why the generally share price of a company increase before the book closure date, and it decreases immediately following the book closure. Let’s see the List of upcoming Book-Closure in Nepal.
List of Upcoming Book Closure in Nepal
Here you can see the upcoming book closure of companies in NEPSE. You can plan your trade strategy accordingly.
| Company | Book Closure Date | Bonus Share % | Cash % | Total Dividend |
|---|---|---|---|---|
| Premier Insurance Company Nepal Limited (PIC) | 6th January, 2023 [Poush 22, 2079] | 5% | 10% | 15% |
| Mero Microfinance Laghubitta Bittiya Sanstha Limited (MERO) | 6th January, 2023 [Poush 22, 2079] | 10% | 10% | 20% |
| IME General Insurance Limited (IGI) | 11th January, 2023 [Poush 27, 2079] | 6% | 0.316% | 6.316% |
| Neco Insurance Company Limited (NIL) | 17th January, 2023[Magh 3, 2079] | 15% | 0.79% | 15.79% |
| Adhikhola Laghubitta Bittiya Sanstha Limited (AKBSL) | 17th January, 2023[Magh 3, 2079] | 30% | 1.58% | 31.58% |
| Prudential Insurance Company Limited (PICL) | NOT-ANNOUNCED | 6.5% | 0.342% | – |
| Guheswori Merchant Banking & Finance Limited (GMFIL) | 3rd February 2023 [Magh 20, 2079] | 6.50% | 0.34% | 6.84% |
| Shikhar Insurance Company Limited (SICL) | 31st January 2023 [Magh 17, 2079] | 16% | 0.8421% | 16.8421% |
| Union Life Insurance Company Limited (ULI) | 30th January 2023 [Magh 16, 2079] | 8.97% | – | 8.97% |
| Arun Valley Hydropower Development Company Limited (AHPC) | 1st February 2023 [Magh 18, 2079] | 8% | 0.421% | 8.421% |
| Nerude Laghubitta Bittiya Sanstha Limited (NLBBL) | 31st January 2023 [Magh 17, 2079] | 22% | 1.1579% | 23.1579% |
| Ridi Power Company Limited (RIDI) | 1st February 2023 [Magh 18, 2079] | 40% | 2.10% | 42.10% |
| Taragaon Regency Hotel Limited (TRH) | 1st February 2023 [Magh 18, 2079] | 8.42% | – | 8.42% |
| Jyoti Bikas Bank Limited (JBBL) | 12th February, 2023[Magh 29, 2079] | 3% | 3.80% | 6.80% |
| Nirdhan Utthan Laghubitta (NUBL) | 14th February, 2023[Falgun 2, 2079] | 19% | 1% | 20% |
| Infinity Laghubitta Bittiya Sanstha Limited (ILBS) | 14th February, 2023[Falgun 2, 2079] | 20.00 % | – | 20.00 % |
| Api Power Company Limited (API) | 16th February 2023, [Falgun 2, 2079] | 7.5% | 0.3947% | 7.8947% |
| Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) | 18th February 2023, [Falgun 4, 2079] | 61.75% | 3.25% | 65% |
| Mahila Laghubitta Bittiya Sanstha Limited (MLBSL) | 19th February 2023, [Falgun 5, 2079] | 47.5% | 2.5% | 50% |
| Mithila Laghubitta Bittiya Sanstha Limited (MLBBL) | 19th February 2023, [Falgun 5, 2079] | 15% | 0.789473681% | 15.789473681% |
| Swabalamban Laghubitta Bittiya Sanstha Limited (SWBBL) | 24th February 2023, [Falgun 10, 2079] | 15% | 6.05% | 21.05% |
As you can see, the latest upcoming book closure is announced by Adhikhola Laghubitta Bittiya Sanstha Limited (AKBSL). AKBSL is distributing a handsome dividend of 31.58%.
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Book Closure’s Effect on Stock Market
If you are a long term investor, you can use the opportunity of the sell off after book closure to stock up on your favorite stocks. Generally traders buy the shares of a company before book closure so that they are eligible for the dividend of the company. The higher the dividend, the higher the price increase before book closure date, and similarly, the price drops are also steep after the book closure date.
Let’s take Ngadi group power for example, the book closure of Ngadi group power was 4th July, 2022. The price were slightly increasing even in the bull market, but just on the book closure day, the price dropped off steeply.
This mean people considered it a good opportunity to unload the stock as the dividends were confirmed to be received by you. And the company might not perform well in the long term.
How to Trade During Book Closure
How you trade on Book Closure depends on your priorities. It can be different for different people. If you are in for long run, and you trust that the company will do good in the future, you can buy more shares of the company immediately after the book closure. You’ll receive the shares at a much lower price after book closure as many people are selling.
You can also choose to buy the shares of a company before the book closure date and sell after the book closure date to earn yourself some quick dividend. Just make sure the dividend you’re getting is worth more than the price drop at which you’ll be selling. I would suggest to buy shares around 2 weeks before the book closure date. Generally during that time the price increase has not yet started. And if you can manage, sell around 2 months after the book closure. The immediate price drop after book closure recovers quite a bit in that period.
So, here we’ve seen the list of upcoming book closure in Nepal. Bookmark this page and come back again tomorrow to see if any new company has announced it’s book closure. If you have any queries, feel free to let me know in the comment section below!
I’m looking for Jalpa book closure for 2022.
Thanks
The proposed dividend for JBLB is 76.841%. The book closure is not yet announced.