Grameen Bikas Laghubitta Bittiya Sanstha Limited (GBLBS) and Samaj Laghubitta Bittiya Sanstha Limited (SAMAJ) have officially received the green light to merge. Nepal Rastra Bank (NRB) gave its final approval for the merger through a letter issued on Jestha 22, according to a notice published on NEPSE.
Background of the Merger
The two microfinance companies had signed a Memorandum of Understanding (MoU) on Falgun 17, 2081, showing their intention to join forces. This move is expected to strengthen their financial position and expand their reach in the microfinance sector.
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GBLBS has a paid-up capital of Rs. 98.25 crores.
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SAMAJ has a paid-up capital of Rs. 2.28 crores.
Share Prices Before Merger
On the last trading day before the announcement:
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SAMAJ’s last traded price (LTP) was Rs. 2,398.70
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GBLBS’s LTP stood at Rs. 788.16
What This Means
The merger is expected to create a stronger and more efficient microfinance institution, combining the resources and networks of both companies. It also reflects the growing trend of consolidation in Nepal’s financial sector, aimed at creating sustainable and competitive institutions.
Conclusion
With NRB’s final approval, GBLBS and SAMAJ are now all set to move ahead with their merger. Investors and customers can expect more updates soon as the integration process begins.
