Cut off price for 28,580 unit auctioned shares of NB Insurance at Rs 1262; Cutoff higher than market price

NB Insurance Company Limited (NBIL) had auctioned its 28,580 unit ordinary right share to the general public from Bhadra 14, 2074 till Bhadra 23, 2074. An official of Global IME Capital Limited, which managed the auction informed that the cut off price for 28,580 unit ordinary shares stood at Rs 1,262. The highest bid amount for the auction shares received was Rs 1,336. Total 54 applicants have submitted their bids for ordinary shares and only 16 of them grabbed shares. After the adjustment of the rights shares, the non-life insurance company’s total paid-up capital reached Rs 54 crore from existing Rs 27 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase the paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NBIL will need to issue a further capital hike of Rs 46 crore (around 86%). It has again proposed 80% right shares to its shareholders. NBIL has earned Rs 10.09 crore in the fourth quarter of the FY 2073/74. Its last traded price (LTP) stood at Rs 1,230 as on September 10, 2017.