City express Finance company to auction its unsold 7.35 Lakhs unit right share; LTP of the stock stands at Rs 104

City express had issue 25 lakhs unit right shares worth Rs 25 crore in the ratio of 1:1.67 in the month of Bhadra 2075.  The issue is undersubscribed by more than 29%, the company had issue 13.75 lakhs unit promoter and 11.25 lakhs unit ordinary right share.

The unsold 2.57 lakhs unit promoter right share and 4.78 lakhs unit ordinary right share will be sold via auction.

The company is supposed to increase paid-up capital to Rs 40 crore through 167% right share issuance. However, the paid up will reach 40 crore after the auction of unsold 7.35 lakhs unit right share.

The company is going to convene its 13th AGM on 29th Kartik 2075 and one of the agendas of the AGM is to issue 100% right share to its shareholders.

After the 100% right issue, company's paid-up will reach 80 crore, thus the company will meet the minimum requirement of paid-up capital set by the Nepal Rastra Bank for the national level finance company.

The stock price of the company stands near the face value at Rs 104. Further, the company is losing through its core work and has reported a net operating profit of -2.39 crore in Q4 of FY 2074/2075. The operating loss was 8 crore in the corresponding quarter of FY 2073/2074.