In the previous article, I tried to clarify all the confusions a beginner might have about a stock dividend. One question I get asked most often in my Instagram page @nepsetrader is how long the bonus shares will take to be listed in NEPSE for trading.
Why believe some random stranger on the internet when you can look at the facts? In this article, I publish the answer that I got after doing a little research. This is what I did:
1) I opened all the news published recently on the popular website sharesansar.com about bonus shares listing. Then I opened each of the company profile to find out when they had declared their book closure date.
What is the book closure date?
You can buy the shares of a company after it has proposed its dividend and still be eligible to get the dividend. How cool is that? You do not have to invest in the company for one whole fiscal year!
The book closure date is simply the date on which the company closes its books for the dividend. Investors can still buy the shares after that date but they won’t get the dividend. To get the dividend of the company, you must buy the shares before the book closure date and you must not sell those shares till the book closure date.
2) I then listed the companies’ book closure dates and the bonus share listing date. The date of listing is simply the day when the shares were listed in NEPSE for trading. Generally, the shares can be traded from the next day of listing.
3) I have then compared how long it took for the companies to have the bonus shares listed in NEPSE. The comparison is made in months.
4) We are not interested in a specific company. So, I have included the ticker symbol of all companies instead of their names. That made the work quicker. Also, ticker symbols are more important than company names in the investing world. 🙂
| Company | Book Closure Date | Shares Listed | Shares were listed: |
| NCCB | Jan 05, 2021 | Feb 04, 2021 | 1 month after book closure. |
| CHCL | Dec 14, 2020 | Feb 03, 2021 | 2 months after book closure. |
| FMDBL | Nov 20, 2020 | Jan 31, 2021 | 2 months after book closure. |
| CZBIL | Nov 26, 2020 | Jan 27, 2021 | 2 months after book closure. |
| FMDBL | Nov 20, 2020 | Jan 27, 2021 | 2 months after book closure. |
| STC | Nov 30, 2020 | Jan 27, 2021 | 2 months after book closure. |
| BOKL | Nov 13, 2020 | Jan 18, 2021 | 2 months after book closure. |
| NICA | Nov 25, 2020 | Jan 15, 2021 | 2 months after book closure. |
| SANIMA | Nov 02, 2020 | Feb 01, 2021 | 3 months after book closure. |
| BOKL | Nov 13, 2020 | Jan 18, 2021 | 2 months after book closure. |
| KBL | Nov 30, 2020 | Jan 12, 2021 | 2 months after book closure. |
| GLICL | Nov 05, 2020 | Dec 29, 2020 | 1 month after book closure. |
| RHPC | Nov 30, 2020 | Dec 15, 2020 | 1 month after book closure. |
| FOWAD | Dec 31, 2019 | Dec 01, 2020 | 12 months after book closure. |
| VLBS | Dec 29, 2019 | Nov 30, 2020 | 11 months after book closure. |
| NLBBL | Dec 29, 2019 | Nov 27, 2020 | 11 months after book closure |
| LGIL | June 22, 2020 | Nov 11, 2020 | 5 months after book closure. |
| NUBL | Dec 16, 2019 | Nov 08, 2020 | 11 months after book closure. |
| TMDBL | Jun 25, 2020 | Nov 02, 2020 | 4 months after book closure. |
| HGI | Jun 26, 2020 | Nov 01, 2020 | 4 months after book closure. |
| SWBBL | Dec 17, 2019 | Oct 14, 2020 | 10 months after book closure. |
| HBL | Jan 27, 2020 | Oct 11, 2020 | 7 months after book closure. |
| NMBMF | March 23, 2020 | Oct 09, 2020 | 7 months after book closure. |
| SMFBS | Jan 10, 2020 | Oct 08, 2020 | 9 months after book closure. |
| CHL | Dec 31, 2019 | Sep 23, 2020 | 9 months after book closure. |
| MLBBL | Dec 31, 2019 | Sep 14, 2020 | 9 months after book closure. |
| WOMI | March 13, 2020 | Sep 10, 2020 | 6 months after book closure. |
| NBBL | Jan 27, 2020 | Sep 09, 2020 | 8 months after book closure. |
| SMB | Dec 30, 2019 | Sep 08, 2020 | 9 months after book closure. |
| CLBSL | Jun 29, 2020 | Sep 08, 2020 | 3 months after book closure. |
| SLBSL | Dec 06, 2019 | Aug 28, 2020 | 9 months after book closure. |
| SAPDBL | March 23, 2020 | Aug 25, 2020 | 5 months after book closure. |
| NICL | March 17, 2020 | Aug 17, 2020 | 5 months after book closure. |
| IGI | Feb 24, 2020 | Aug 17, 2020 | 6 months after book closure. |
| CIT | Jun 24, 2020 | Aug 16, 2020 | 2 months after book closure. |
| NBB | Dec 11, 2019 | Aug 10, 2020 | 9 months after book closure. |
| NNLB | Dec 19, 2019 | Aug 09, 2020 | 9 months after book closure. |
| PRIN | Jan 24, 2020 | Aug 06, 2020 | 7 months after book closure. |
| GILB | Nov 11, 2019 | Aug 06, 2020 | 9 months after book closure. |
| SHL | Dec 11, 2019 | Aug 05, 2020 | 9 months after book closure. |
Conclusion
The data shows that the bonus shares listing time is all over the place. Bonus shares of some companies get listed within a month while that of some take one whole year.
Personally, I think the Securities Board of Nepal (SEBON) and NEPSE should look into this matter and make listings on time. It is not fun to invest for dividend and have your money frozen because you can’t sell the shares as they aren’t listed yet.
how long does it take for company to be listed in nepse after ipo results are announced?
Hi, Cyril. It ideally takes a week or a few days more. Not more than a month though.
Hello sir,
What if I sell the stocks of company after the book closure date. For example. The book closure of ABC company is 10 may
And if I sell my stocks of ABC company on 15 may will I get the bonus share? Please
Hi, Prashant.
Yes, you will get the bonus shares. You only have to be an investor till the book closure date.
In fact, this happens so often in NEPSE. A huge volume of sell orders is seen on the next day after the book closure and the stock tends to lose for quite some time. It feels as if investors want to sell after the book closure date since they are sure of getting a dividend now.
Hope this helped.
Hello Sir,
can i eligible to get bonus share if i sold share in 5 august and book close date is of 3-15 th august
Yes. Absolutely. You will be eligible for the bonus shares.
All that matters is the book closure date.
Hello samin ji,
Can i be eligible to get bonus share in the condition of ABC companie’s book closure date is 29th may and i buy its share in 27th may but broker transferred that share in 29th may in my DMAT a/c
Hi, Paul.
Yes, you will be perfectly eligible. 🙂
Hello sir I sold my share at jun 2021 can I get bonus share in this year. Because of I hade share one hole year 2020
Hi Tikaram ji,
It is impossible to answer that without knowing which company’s shares you sold. Companies have different book closure dates.
What happens if I sell my stock on 5th January? Book close date is 5th January too.
Hi, Kamlesh.
You’ll still be eligible for the dividend.
Hi. When will HDL list its bonus shares? Or when did it do last time?? Thank you.
Hi, Nabin,
It was only on December 22 that HDL proposed 75% bonus shares and 25% cash dividend for the fiscal year 2077/78.
Listing will take time.
hello, i wanted to ask that i have created my demat account in 2018 and dematerialze my shares of certain company which was bought 10 years ago(IPO) in 2018…however i have never collected my bonus shares n dividend. I want to ask is if i had not collected those bonus shares will they become automatically dematerialize before of 2018 or sud i need to collect all of them n dematerialize ??
You may have to coordinate with the respective company’s share registrar since there is no clear answer regarding this. 🙂