Cut off price for 4.51 lakh unit auctioned ordinary shares of Siddhartha Dev. Bank stood at Rs 205; Siddhartha Equity Oriented Scheme grabs majority of ordinary shares

Siddhartha Development Bank Limited (SDBL) had auctioned for unclaimed 4,05,888.45 units promoter  shares and 4,51,548.56 ordinary right shares from Ashad 14, 2074 till Ashad 21, 2074. The bid was opened today (Ashad 23, 2074). Preliminary cutoff price for 4,51,548.56 units ordinary shares stood at Rs 205. The highest bid amount for the auction shares received was Rs 440. Total  646 applicants had submitted their bids for ordinary shares and only 393 of them got shares. Siddhartha Equity Oriented Scheme, mutual fund scheme had bid for 40,000 ordinary shares at Rs 235, another 10,000 shares for Rs 221 by Siddhartha Capital Limited and Premier Insurance bid for 8,000 shares at Rs 245. Likewise for 4,05,888.45 units promoter shares, the highest bid amount received was Rs 121 and the cutoff price stood at Rs 103. Only 33 out of 59 valid promoter share applicants were allotted the shares. As per the auction notice, all applicants that had bid in decimal format have been cancelled. Hathway Investment Company had bid for 46,500 units ordinary shares at Rs 215.5 which was cancelled due to decimal format. Likewise, Asian Life Insurance Limited bid 67,300 units at Rs 222.56. SDBL has earned net profit of Rs 28.83 crore in the third quarter of the FY 2073/74. After the adjustment of 60% right shares and allotment of shares in this auction, the paid up capital of SDBL will reach Rs 2.27 arba. Siddhartha Development Bank is in final process of being acquired by Janata Bank Nepal Limited (JBNL) in a share swap ratio of 1:1. After the acquisition, the final paid up capital of Janata Bank will reach around Rs 7 arba. Its LTP stood at Rs 297 (pending to be adjusted to Rs 223 for 60% right share) as of its last trading day whereas JBNL’s LTP stood at Rs 272 as of yesterday (July 6, 2017).