Agricultural Dev. Bank Auction Final Update: Applicants bidding Rs 361 to get 8% on pro-rata basis; refund on Falgun end

Agricultural Development Bank Limited (ADBL) had auctioned its 19,68,575 units of ordinary right share to the general public from Magh 27, 2073 till Falgun 12, 2073. The bids were opened on Falgun 15, 2073. An official of Ace Capital Markets Limited, which managed the auction for Agricultural Development Bank, informed that the cut off price for 19,68,575 units ordinary shares stood at Rs 361. However, applicants who had bid for the shares at the cutoff price of Rs 361 got only 8% shares on pro-rata basis. Other applicants who had bid above Rs 361 got as much shares as they had bid for. The highest bid amount for the auction shares received was Rs 601. Total 9,223 applicants had submitted their bids for 19,68,575 unit ordinary shares and 2,100 of them got shares. BOD meeting of Agricultural Development Bank Limited to be held tomorrow (Falgun 19, 2073) will approve the above cutoff price. Non-allottees will get refund money after 7 working days after the BOD meeting i.e. on Falgun end. Agricultural Development Bank has earned Rs 90.66 crore in the second quarter of the current fiscal year 2073/74. ADBL has proposed 20% bonus share for the FY 2072/73. After the capitalization of bonus, auctioned shares and 50% right share, the paid up capital of the commercial bank will reach Rs 7.08 arba, in addition to irredeemable preference share capital worth Rs 5.43 arba. It will need to further hike its capital by around 13% to meet NRB’s minimum requirement of Rs 8 arba by the end of FY 2073/74. Its last traded price stood at Rs 430 as of today.