Auction is a process of selling goods to the highest bidder(s). When companies come up with right shares that go unsubscribed by its shareholders, those unclaimed shares are sold via auction. Bidders submit a sealed bid quotation in which shares are sold to the highest bidders. In auction, only those applicants with highest bid or those who have bid at cut-off price or above it is allotted with the share. Those applicants who bid below the cut off price are not allotted with the shares.
Auction Notice for Everest Bank
At present, auction is prominent in Nepalese stock market. Many Banks and Financial Institutions (BFIs) have sold their shares through auction. Selling shares through auction helps BFIs to increase their net worth as premium collected from the auction are directly transferred into the reserve. Also, for the applicants as well, it might be great opportunity to grab the shares at Rs 100 and above or at the minimum price quoted by the company.
Auction Form for Everest Bank:
Bidding in the auction is an easy process but one must know it in detail. Today, we try to clear the confusions of those who wants to bid in auction. The below mentioned process are recommended to follow if one wants to bid in auction:
- Know the details of auctioning company from national dailies or online news portals like ShareSansar.com.
- Get the auction form from respective issue manager.
- Fill up the form properly with all details of the applicants.
- Go to the designated bank and deposit the money or make Good for Payment cheque from bank where applicant has maintained their bank account. In case of Everest Bank, the amount must be deposited in the name of "NIBL Capital Markets Limited" in the account number 0124524616846016 at Kumari Bank Limited.
- Submit the auction form attached with copy of citizenship, photo, bank deposit voucher or Good for Payment cheque, Demat confirmation letter and PAN number and CBI report (if required). Make sure that the form is submitted in an envelope sealed with “Laha Chhap”.
After closing of the auction form submission date, the sealed bids are opened in the presence of public. The cutoff price is declared based on the bids received. Applicants who bid at or above cut off price are shortlisted and allotted with the shares if all the documents are correct. But those who are not allotted are refunded after 3 days of the allotment.
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