Aution of NCC Bank attracts huge crowd; CIT applied for entire auction but subject to allotment

Nepal Credit and Commerce Bank Limited's (NCCB) had opened an auction for 79.10 lakh unit right shares.

The bank has auctioned 65,16,795 units promoter shares and 13,94,198 units ordinary shares. For the promoter shares, the existing promoters of the company will be given priority while issuing the shares.

Sunrise Capital Limited has been appointed as the issue manager for the auction of the shares.

Currently, the paid up capital of the bank is Rs 4.67 arba. After the adjustment of the right shares, the paid-up capital of the bank will rise to Rs 7.01 arba. The bank will likely distribute bonus shares for the remaining Rs 99 crore to meet the minimum capital requirement of Rs 8 arba.

Given the possibility of bonus shares, the auction has attracted many investors albeit the market trend. According to the officials at privy, a total of 119 applications were received for promoter shares and 4,922 applications for ordinary shares.

The bid opening had started from 10 AM today but is likely to take the whole day. Based on the bids opened so far, from the applications for promoter shares the maximum bid has been received at Rs 145, while the minimum is Rs 100.

The LTP of NCCB today is Rs 218. Similarly, the promoter shares of NCC Bank (NCCBPO) was last traded on December 30, 2018, at Rs 130.

Citizen Investment Trust (CIT) has shown a special interest in the auction and has applied for the entire shares floated. It has applied for ordinary shares at Rs 191 and for promoter shares at Rs 101 approximately. Since a lot of bids are yet to be opened, the conclusive results will be available later.