Cutoff Price for 3.36 lakh units ordinary shares of Garima Bikas Bank at Rs 276; Kathmandu Capital & NIBL mutual funds among highest bidders

  Garima Bikas Bank Limited (GBBL) had auctioned 9,847.12 units promoter shares and 3,36,071.54 units ordinary shares from Asadh 18 to Asadh 25, 2074. The bids were opened yesterday at Ace Capital, Lal Durbar at 3:00 PM. The cutoff price for ordinary auctioned shares stood at Rs 276. The highest bid amount received was Rs 394. Total 1000 applicants have submitted bid for 3.36 lakh unit auctioned ordinary shares. Similarly, for promoter shares, the cutoff price stood at Rs 147.12. Total 6 applicants submitted bid for 9,847.12 units promoter shares. Kathmandu Capital had applied for 20,000 units ordinary shares at Rs 293 and both mutual funds of NIBL Capital (NIBL Samriddhi Fund-1 and NIBL Pragati Fund) applied for 10,000 units each at Rs 287. The bank is going to issue refund warrants to the non-allottees 7 days after the bid opening date. Its LTP stood at Rs 296 as of yesterday (July 10,2017). Garima Bikas Bank has earned net profit has of Rs. 24.85 crore in the third quarter of the fiscal year 2073/74. The bank has an authorized capital of Rs 3 arba. Its paid up capital stands at Rs 1.29 arba and after issuance of 70% right share, its paid up capital will reach Rs 2.20 arba. As per NRB’s requirement for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, GBBL should increase its capital by a further Rs 30 crore (around 13.85%).