Nepal Lube Oil Adjusts Share Price After 20 Percent Bonus Share Announcement

26th September 2025, Kathmandu

The Nepal Stock Exchange (NEPSE) has officially adjusted the share price of Nepal Lube Oil Limited (NLO) in response to the company’s decision to distribute a 20% bonus share to its shareholders.

NLO Adjusts Share Price

The adjustment took place on Ashwin 10, 2082 (September 26, 2025), a day after the company’s shares were last traded before the book closure. This is a standard procedure followed by stock exchanges to account for the increase in the number of outstanding shares due to the issuance of bonus shares. The adjustment ensures that the company’s market valuation remains consistent, and it provides a new, fair reference price for trading. For existing shareholders, the adjusted price signifies the value of their holdings after the bonus shares have been added, allowing them to benefit from the increased share quantity.

Details of the Price Adjustment and Dividend

The share price of Nepal Lube Oil was adjusted to NPR 244.33 per share, down from its last trading price of NPR 293.20 on Ashwin 9, 2082 (September 25, 2025). The calculation for this adjustment is based on the proportional decrease in price that results from a 20% increase in the number of shares. This can be calculated using the formula:

Adjusted Price = (1+Bonus Share Percentage) Last Trading Price
​
In this case, the calculation is 244.33 = (1+0.20) 293.20
​
This new price is the base from which the stock will trade when the market reopens.

In addition to the 20% bonus share, the company has also proposed a 1.05264% cash dividend, which is specifically intended to cover the tax on the bonus shares. The total dividend proposed by the company for the fiscal year 2081/82 amounts to 21.05264%. These proposals will be a key agenda item at the company’s upcoming 34th Annual General Meeting (AGM).

Upcoming Annual General Meeting and Other Key Agendas

The 34th AGM of Nepal Lube Oil Limited is scheduled to be held on Ashwin 31, 2082 (October 17, 2025), at The Plaza, Pulchowk, Lalitpur, starting at 11:30 a.m. This meeting is crucial as it will bring several major proposals to the table for shareholder approval. The agendas for the meeting include:

Approval of the Dividend: Shareholders will vote to approve the proposed 20% bonus share and 1.05264% cash dividend.

Approval of 200% Rights Share Issuance: A major item on the agenda is the proposal to issue a staggering 200% rights share. This means that existing shareholders will have the option to purchase two new shares for every one share they currently own. This rights issue, which has been submitted to the Securities Exchange Board of Nepal (SEBON) for preliminary review, is intended to raise significant capital for business expansion. The company’s paid-up capital will increase from its current NPR 7.29 crore to a much larger amount after the bonus and rights shares are issued.

Amendments to MOA and AOA: The AGM will also consider amendments to the company’s Memorandum and Articles of Association to reflect the capital increment.

Auditor Appointment and Director Election: The meeting will also include the appointment of an auditor for the fiscal year 2025/26 and the election of directors representing the public shareholding group.

The company has set the book closure date from Ashwin 12, 2082 (September 28, 2025), for the purpose of the dividend and AGM. This means that only shareholders who are on the company’s books until the trading day preceding the book closure, i.e., Ashwin 9, 2082, will be eligible for the dividend and have the right to attend and vote at the AGM.

Implications for Investors

The combination of a 20% bonus share and a proposed 200% rights share issuance signals Nepal Lube Oil’s strong financial health and ambitious growth plans. The bonus shares reward shareholders for their loyalty, while the rights issue provides them with an opportunity to increase their ownership stake in the company at a preferential price. The capital raised from the rights issue will be a crucial source of funding for the company’s future expansion plans. The market will be watching closely to see how the company utilizes this capital to drive further growth and profitability. The price adjustment, while a mechanical process, sets a new base for the stock and is an important part of the dividend distribution process.

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