Has auction share lost its charm lately? Nepal Bangladesh Bank, Laxmi Bank, & many more share price is trading below Auctioned cutoff price
Mon, Aug 14, 2017 3:09 PM on Latest, Exclusive, Financial Analysis, Featured, Company Analysis, NEPSE News, Others, Stock Market,
From the period of 1st of Baisakh to 30th Shrawan 2074, a total of 5,753,527 units of ordinary shares of 27 different companies were auctioned off. There is a huge unsubscribed Right share coming in to auction for general public these days.
ShareSansar has tried to compare the current market price with auctioned cutoff price of all the companies which has auctioned their shares in last 4 months time period.
Of the total 27 companies, 21 companies had their share price increased and 6 companies decreased compare to the cutoff of each auction share to last traded price of the company as of 29th Shrawan. Most of the company's share price has increased only marginally in the table given below.
As on 29th Shrawan, the last traded price of the shares of these company stands as:
Note:-TDBL's and SDBL's Last Traded Price is after adjusting 1:1 Right on Rs.427 and 10:6 Right on Rs 297 respectively.*
The company shares whose price has declined from the cut-off price stands as:
Note:-LBL's Last Traded Price is after adjusting 18.29% bonus on Rs. 336*
It is understood that the auction cutoff price is the minimum price one can get hold of shares. So any price below cutoff price is considered safe levels to the investors.
From the below table it is noticeable that there is not much difference in NEPSE indices from Baisakh starting to Shrawan end. Trend is almost same but still the LTP of most of the companies are mostly same or down compare to cutoff price. This concludes that auction share if not bid at significant spread then it's not a lucrative investment.
From 1st of Baisakh to 30th of Shrawan, the index variation stands as:
Note:-TDBL's and SDBL's Last Traded Price is after adjusting 1:1 Right on Rs.427 and 10:6 Right on Rs 297 respectively.*
The company shares whose price has declined from the cut-off price stands as:
Note:-LBL's Last Traded Price is after adjusting 18.29% bonus on Rs. 336*
It is understood that the auction cutoff price is the minimum price one can get hold of shares. So any price below cutoff price is considered safe levels to the investors.
From the below table it is noticeable that there is not much difference in NEPSE indices from Baisakh starting to Shrawan end. Trend is almost same but still the LTP of most of the companies are mostly same or down compare to cutoff price. This concludes that auction share if not bid at significant spread then it's not a lucrative investment.
From 1st of Baisakh to 30th of Shrawan, the index variation stands as:
