Arun Valley Hydropower Auctioning Unclaimed Right Shares; Auction Can Add Over Rs. 17 Crores as Non-Operating Profit to Company's Books

Wed, Jun 23, 2021 11:18 AM on Latest, Dividend, Bonus & Rights, Auction,

Arun Valley Hydropower Development Company Limited is auctioning its ordinary right shares. These are the unclaimed rights shares in the rights offering that concluded on Jestha 02 earlier this year. The auction has opened today, i.e. 9th Ashar and will close on 16th Ashar, 2078.

4,35,894 units of ordinary right shares will be auctioned. Individuals, institutions, and companies are all eligible to bid for the auction.

While the minimum bid rate is Rs. 100, the minimum bid quantity should be 100 units. Although bidders can bid for the entirety of the issue, they are required to abide by Nepal Rastra Bank's rule to not exceed the specified quantity of shares per entity.

Muktinath Capital is the auction manager. Assuming that the shares will be auctioned away at an average price equal to the company's last-day closing price of Rs. 509, the company will earn an extra Rs. 409 per share via this auction. Given that the entirety of shares will be auctioned away, this will add Rs. 17,82,80,646 as a non-operating profit to the company's books. Note that this is only an approximation, and the auction cut-off rate may deviate from this figure. 

Auction notice