Investors need to seek approval from Insurance Board to bid for 10.31 lakhs unit auctioned promoter shares of Nepal Insurance by Nepal bank; last day on Jestha 4; min bid amt Rs 400

Nepal Bank Limited (NBL) has been inviting sealed bids for 10, 31,674 units promoter shares of Nepal Insurance Company Limited (NICL) through an auction from Baisakh 15, 2073. The auction will close on Jestha 4, 2073. Only 3 day left to file for the auctioned promoter shares of Nepal Insurance Company. The sealed bid will be open on Jestha 5, 2073 at 3:15 PM in the Siddhartha Capital Limited which is also the issue manager of this auction. As per the notice published by the bank today, Investors who want to buy/ bid or sell the promoter shares of Nepal Insurance Company will have to seek approval from Insurance Board. Promoter shares of Insurance companies are not easily tradable on Nepal Stock Exchange Limited (NEPSE). Investors have to meet the required criteria to make the transaction in NEPSE. The minimum bid amount is set at Rs 400 and the interested applicants must bid for a minimum of 100 units of the share and maximum they can apply for 4, 31,410 units share. Siddhartha Capital Limited is the issue manager for this auction. The bank has urged the interested bidders to submit their bids by 3:00 PM till Jestha 4 at the Siddhartha Capital Limited located at Hanumansthan, Anamnagar, Kathmandu. The investors applying for the auction can deposit the bid amount in the account number 00115207281 of the Siddhartha Capital Limited. Overview of Nepal Insurance Company Nepal Insurance a non-life insurance company of Nepal was established on 1947 A.D by Nepal Bank Limited (the first commercial Bank) and general public with promoter- public share structure of 51% and 49% shares respectively. Nepal bank is holding 14,66,801.82 units shares (51% promoter shares) of Nepal Insurance and after auctioning 10, 31,674 units shares (35.87% shares) , Nepal bank will be  holding 15.12 percent promoter  shares of Nepal Insurance company. The paid up capital of the insurance company stand at Rs 28.76 crore . Shareholder can hold only 15% of the total paid up capital i.e. 4, 31,410 units share of Nepal Insurance equals to 15% of its total paid up capital. The insurance company had provided 9 percent bonus share to its shareholders from the net profit it earned in the last fiscal year 2071/72. The last traded price (LTP) of NICL stood at Rs 826 as May 15, 2016.