Cutoff for the auctioned ordinary shares of Bhargav Bikas Bank stands at Rs 128; No applications for promoter shares received

Bhargav Bikas Bank Limited (BHBL) had auctioned 7,53,370 unit shares on Jestha 03, 2075 which included 6,67,706 unit promoter shares and 85,664 unit ordinary shares.

The minimum bid price for the auction was set at Rs 100 i.e. the bidders should place their bids above Rs 100.

NMB Capital Limited is the issue manager for the auction.

According to the officials at NMB Capital, the cutoff for the ordinary shares stands at Rs 128. A total of 241 applications were received for 2,02,982 unit shares. The maximum bid was received at Rs. 155.

However no application was received for promoter shares.

The bank had issued 80% right shares worth Rs 21.12 crore. After the capitalization of 80% right shares, the paid-up capital of the bank will reach Rs 47.52 crore. It had registered 9.53% increase in net profit in the third quarter of the current fiscal year 2074/75 to Rs 2.67 crore.

As per NRB’s requirement for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, BHBL will need to issue a further capital hike of Rs 2.48 crore (around 5.25%).

Its annualized earning per share (EPS) stand at Rs 8.90 and Net worth per share at Rs 124.88.

The LTP of BHBL is Rs. 138.