Cut off price for 61.58 lakh unit promoter shares of BOKL likely at Rs 251; Employees Provident Fund bids for 61 lakh kitta at Rs 251

Bank of Kathmandu Limited (BOKL) has been opening the bids for its 61,58,067 units auctioned promoter shares. As per the preliminary report, the cut off price will likely stand at Rs 251 as Employees Provident Fund has bid for 61.58 lakh units promoter shares at this rate. The maximum bid received till now is Rs 267. There were altogether 961 bidders. Companies like Asian Life Insurance, Neco Insurance, Himalayan General Insurance, etc. also submitted their bids but at far lower prices. If Rs 251 is the cut-off price, BOKL will earn more than Rs 92.2 crore in premium from this auction. The application for the auction was open from Mangsir 22 to Mangsir 29, 2074. After the merger of Bank of Kathmandu Limited and Lumbini Bank Limited, the promoter ownership of the merged bank was diluted to 45.64%. As per NRB’s regulation, a bank must have at least 51% promoter ownership. Thus, after this auction, promoter public ratio will be 51%-49%. Its current paid up capital stands at Rs 5.62 arba. After auction, it will reach to Rs 6.24 arba. To meet the capital requirement of Rs 8 arba, it should further hike its capital by Rs 1.76 arba (around 28%). BOKL had earned Rs 22.41 crore in the first quarter of the FY 2074/75.