Auction Share of NIBL draws huge response; 6 firms applied for 50 lakh units

ShareSansar, December 16:

Auctioned promoter shares of Nepal investment Bank Limited (NIB) have drawn huge response from the investors. Mainly, six institutions have applied for around 5 million units among auctioned 57,96,757 units promoter shares of NIB according to a source from Rastriya banijya bank limited (RBBL).  

Citizen Investment trust, Rastriya Beema sansthan, Life Insurance Corporation, Nepal Life Insurance Corporation are major institutional bidders, said Mr. Bhupendra Pandey, Treasury Head at Rastriya Banijya Bank Limited (RBBL).  We predict there is oversubscription on the auction of NIB promoter shares, Pandey added.  

RBBL has offloaded the shares from its crossholding on NIB. Central bank had made compulsory for Bank and financial institution to offload their crossholding.

According to Pandey bank was able to collect 2.5 billion rupees from the centers located inside Kathmandu valley and about to finalize the collection from 16 centers outside the valley.  From Biratnagar alone collection was 10 crores above. And in the Bhotahiti center in Kathmandu the queue was seen till 8:00 PM last night.

The bidding was closed Mangsir 29, 2071. It had made compulsory for bidders to have Demat account. Minimum bidding was set for 100 shares while the maximum units divided by 10.  The minimum per unit share price had been set Rs 400 for NIBL.

Likewise, 1,78,927 units of Nepal Aawas Finance Limited (NABB) promoter shares have been fully subscribed.  

Earlier in Bhadra, RBBL has offered to sell its 6,220,066 units of shares of NIBL through open bidding at the minimum bid price of Rs 530 per share. But at that time, the company was able to sell only 11,79,408 units shares to the 750 bidders in total.