Cutoff of auctioned ordinary shares of Surya Life likely to stand above Rs 500; Only 5 applications for promoter shares

Surya Life Insurance Company Limited (SLICL) had opened an auction for its unsold 74,384 units (3,289 units promoters and 71,095 units ordinary) shares till Shrawan 23, 2075.

NIC Asia Capital is the issue manager for the auction of the right shares. According to the officials at privy following information has been received:

Promoter shares

A total of 5 applications were received of which one was the existing promoter. So by rule the promoter got all the shares applied for at Rs 275.

Ordinary shares

A total of 1015 applications are received and the opening is ongoing. The bids received have a very diverse range, some ranging as low as Rs 101 to Rs 200 and some ranging as high as Rs 500 to Rs 600. Some of the bids opened so far are:

• Kumari bank for 10,000 units at Rs 370
• NMB Mutual Fund for 20,000 units at Rs 402.5
• Prudential capital for 1,000 units at Rs 493
• Vishal group for 11,000 units at Rs 502
• Vishal group for 9,000 units at Rs 507

So the cutoff is likely to come above Rs 500. According to the updates till now, the preliminary cutoff stands at Rs 516.

SLICL’s current paid-up capital is Rs 72.18 crore. After the adjustment of 40% right shares, the paid-up capital of the company will reach Rs 1.01 arba. The company has already proposed 12% bonus shares which will increase its capital to Rs 1.13 arba.

Recently, the company has proposed the issuance of 70% right shares which will take its capital to Rs 1.92 arba. After the issuance of 70% right shares, the paid up capital of the life insurance company will reach Rs 1.92 arba and it will need to raise the capital by about Rs 8 crore to meet the minimum capital requirement.