Bids Received in Auction of Barun Hydropower Company Ordinary Shares Opened; What is the Cut-Off Rate?

Mon, Nov 14, 2022 11:32 AM on Auction, Latest,

The bids received in the auction of 3,55,060 unit ordinary shares of Barun Hydropower Company (BARUN) has been opened today, i.e. 28th Kartik, 2079.

The auction had opened on 14th Kartik and concluded on 21st Kartik, 2079 at the end of banking hours. 3,55,060 unit ordinary shares were auctioned.

This is the unclaimed portion of the rights offering that closed on Bhadra 31, 2079. The issue had opened on Bhadra 06. A total of 26,79,075 shares were issued to eligible shareholders at a par value of Rs. 100 per unit. Eligible applicants were allotted 23,24,015 shares. Thus, the remaining 3,55,060 shares were auctioned from 14th Kartik.

RBB Merchant Banking was appointed the auction manager. Bids had opened today at the head office of the company located at Teku, Kathmandu, starting at 8 am. The existing promoters, general public, and institutions were all eligible to bid for the auction.

Rs. 100 is the minimum bid rate for the auction. While the minimum bid quantity for shares is 100 units, there is no upper limit. Although bidders can bid for the entirety of the issue, they are required to abide by the regulatory body rule to not exceed the specified quantity of shares per entity.

According to the auction manager, a total of 650 applicants placed bids for ordinary shares. The tentative cut-off rate is Rs. 191.34 whereas maximum bid rate stood at Rs. 225. Once all of the checks get reconciled and cleared, the cut-off price may vary.

As of writing, the company's LTP stands at Rs. 204.9 per share.