Investors bidding for Nepal Bank’s shares at Rs 133 or below might be disappointed

ShareSansar, Sept 24:

Those who have bid Rs 133 or below for the unclaimed rights shares that Nepal Bank Limited has auctioned might not stand a chance to buy these shares when the bid opens tomorrow, according to very reliable sources in the market.

“As some major investor has bid for all the auctioned shares at Rs 133 per unit, the other bidders might not stand a chance when the bid opens tomorrow,” a source privy of the development told ShareSansar.com this afternoon.

The sources, however, did not disclose any names.

The bid will open at 11:00 AM tomorrow at Civil Capital Markets Limited at Kalamadi.

More than 1,200 applicants had bid for the much-awaited auction of the unclaimed rights shares of the oldest bank of the country.

The auction had opened on September 16, as per which the minimum price of a unit share was set at Rs 100. A bidder could bid for a minimum of 100 unit shares and the maximum of 24 lakh 90 thousand and 804 units, that is, the total number of rights shares being auctioned.

The bank had posted a 348.80 percent growth in profit for the last fiscal year, earning a net profit of Rs 79.15 crore as against Rs 17.63 crore in the previous fiscal year.

In a sign of the bank’s improving financial health, Nepal Bank’s nonperforming loans declined to 4.53% from 5.58% in the previous fiscal.

Nepal Bank Limited has also been able to meet the minimum paid-up capital fixed by Nepal Rastra Bank for commercial banks. The bank raised its paid-up capital to Rs 3.71 arba from Rs 1.77 arba reported at the end of last fiscal.

The bank’s deposits increased 12.37 percent to Rs 62.98 arba and loans and advances rose 27.46 percent to Rs 37.85 arba.