Bid Opening Concludes for the auction of Civil Laghubitta; How much is the cut-off price?

The bid opening has concluded for the bids received in the auction of the promoter and ordinary shares of Civil Laghubitta Bittiya Sanstha Limited (CLBSL).

The company had auctioned 11,608 units of unclaimed promoter shares and 77,842 units of unclaimed ordinary shares. This was the unclaimed portion of the right shares that the company had issued.

According to the auction manager Century Capital Markets, based on preliminary data, the tentative cut-off price is Rs. 254 for promoters and Rs. 645 for the general public. The actual cut-off price might vary after they reexamine the data. In comparison, the ordinary shares of Civil Laghubitta have a market price of Rs. 743 per share (as of writing). This clearly shows that bidding in an auction like this is a profitable bargain. 

The company will raise Rs 11 crore 41 lakh 14 thousand from the issue (claimed right shares and unclaimed right shares auction). Post right share and FY 2075/76 proposed 5% bonus share, the paid-up capital of Civil Laghubitta Bittiya Sanstha will be Rs 23.40 crore.