Cut off price for 42,815 unit auctioned shares of Lumbini General Insurance at Rs 756.77; 91 bidders allotted

Lumbini General Insurance Company Limited (LGIL) had auctioned its 42,815 unit ordinary right share to the general public from Bhadra 28, 2074 till Asoj 6, 2074. An official of CBIL Capital Limited, which managed the auction informed that the cut off price for 42,815 unit ordinary shares stood at Rs 756.77. The highest bid amount for the auction shares received was Rs 950. Total 608 applicants have submitted their bids for ordinary shares and only 91 of them grabbed shares. After the adjustment of the rights shares, the non-life insurance company’s total paid-up capital will reach Rs 78 crore from existing Rs 39 crore. As per Insurance Board’s recent directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, LGIL will need to increase its capital by further Rs 22 crore (around 28.20%). LGIL has earned Rs 19.09 crore in the fourth quarter of the FY 2073/74. Its last traded price (LTP) stood at Rs 926 as on September 20, 2017.