Bids Received in Auction of City Hotel Limited Ordinary, Promoter And Employees Shares Opened; What is the Cut-Off Rate?

City Hotel Limited (CITY) opened the bids for its unsold promoters, employees, and ordinary lock-in shares auction on 5th Mangsir, 2082. Prabhu Capital Limited was appointed as the auction manager. The bidding process took place at the premises of Prabhu Capital Limited, Kamaladi, Kathmandu, starting at 9:00 am.

The auction opened on 23rd Kartik 2082 and concluded on 30th Kartik 2082 at the end of banking hours. A total of 19,80,999 units of promoter right shares under lock-in, 6,000 units of employee lock-in shares (both locked until Jestha 04, 2083), and 1,54,419 units held by public shareholders were auctioned. All interested individuals, companies, and institutions were eligible to participate in the bidding process.

This is the unclaimed portion of the rights offering. The company had issued a 1:0.80 ratio right share issue to its shareholders from 23rd Bhadra to 26th Ashwin, 2082.

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

According to the auction manager, the tentative cut-off rates are Rs. 276 for lock-in promoter shares, Rs. 312.50 for employee shares, and Rs. 467 for ordinary public right shares. The cut-off prices may be revised once all checks are reconciled and cleared.

The last traded price of the scrip stands at Rs. 529.00 per share.