Companies earning massive premiums from auction; See which companies have collected more premium from auction
Sun, Jul 2, 2017 12:44 PM on Latest, Exclusive, Financial Analysis, Featured, Company Analysis, Others, Stock Market,
Many companies have been issuing right shares to their shareholders to further increase their capital. However, not all shareholders claim their right shares due to various reasons. These unclaimed right shares are eventually sold into auction, where other general public can bid for them. Nowadays, the unclaimed right shares have also been an opportunity for the company to increase their reserve. Premium collected from the sales of unsold right shares are added to the share premium account under the reserve of the company, which is free reserve and can be utilized to distribute bonus shares to its shareholders. Collection of premium from auction strengthens the company leading to increment in the net worth of the company.
In this analysis, ShareSansar has analyzed which companies have earned the most amount from premium collected through auction shares. In FY 2073/74, 58 companies have sold their unsold right shares through auction.
In the analysis below, figures of premium are calculated only on the basis of units sold multiplied by cutoff price. This means that the company has earned a minimum of this amount as share premium. The analysis shows that Agricultural Development Bank Limited (ADBL) and Citizens Bank International Limited (CZBIL) have collected the most amounts from sales of their shares.
- Commercial Bank’s Premium collection:
- Development Bank’s Premium Collection:
- Finance Company’s Premium Collection:
- Microfinance Company’s Premium Collection:
- Insurance Companies:
- Hydropower’s Premium Collection