Cut off price for 86,729.53 units auctioned ordinary shares of Neco Insurance stood Rs 1055

Neco Insurance Company Limited (NIL) had auctioned its unclaimed 86,729.53 units ordinary and 6,163.79 units promoter right shares to the general public from Jestha 5, 2074 till Jestha 12, 2074. The bid was opened on Jestha 14, 2074 (Sunday). An official of NMB Capital Limited, which managed the auction for Neco Insurance, informed that preliminary cutoff price for 86,729.53 units ordinary shares stood at Rs 1055. The highest bid amount for the auction shares received was Rs 1,180. Total 714 applicants had submitted their bids for 86,729.53 units of ordinary shares. Likewise for 6,163.79 units promoter shares the highest bid amount received was Rs 217 and the lowest bid price was Rs 141. Only 3 existing promoters of the insurance company had applied for the auction promoter shares. The cutoff price of promoter share will be known only after review and final allotment as a single shareholder cannot hold more than 15% shares of the company added the official. NIL had earned net profit of Rs 12.88 crore up to the third quarter of the FY 2073/74.  NIL had also distributed 20% bonus share. Its paid up capital after 100% right share capitalization will reach Rs 71.28 crore. As per Insurance Board’s 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, NIL will need to issue a further capital hike of Rs 35.20 crore (around 55%). Its last traded price (LTP) stood at Rs 1150 as on May 28, 2017.