Janata Bank auctioning unsold 7.67 lakh units shares at Rs 100 & above from today

Janata Bank Limited (JBNL) is auctioning its ordinary and promoter right shares to the general public from today (Chaitra 1, 2073). The bank is selling 3,71,026 units ordinary share and 3,96,526 units promoter shares after the rights shares issued on Mangsir 1, 2073 were not fully subscribed by the shareholders. The bank had offered right shares at the ratio of 2:1. The auction will last till Chaitra 15, 2073. The bid will open to conclude the auction on Chaitra 16, 2073 at 3:00 PM. Bidders must quote a minimum price of Rs 100 per unit, which means that the lowest bid amount must be more than Rs 100. Interested bidders must bid for a minimum of 100 units of ordinary shares and for a minimum of 1,000 units for promoter shares. NCM Merchant Banking Limited has been assigned as the issue manager for this auction. The bank has urged interested bidders to submit their bids by 3:00 PM till Chaitra 15 at NCM Merchant located at Kamalpokhari, Kathmandu. The investors applying for the auction can deposit the bid amount in the account number 0690000132001 maintained in the name of NCM Merchant Banking Limited at Sunrise Bank Limited. JBNL’s trading is in halt in Nepal Stock Exchange Limited (NEPSE) since October 28, 2016 following its merger with Triveni Bikas Bank Limited. Its last traded price stood at Rs 387 as on October 27, 2016. Janata Bank has earned net profit of Rs 16.13 crore in the second quarter of the fiscal year 2073/74 as per unaudited report. It is undergoing merger with Triveni Bikas Bank Limited with a share swap of 1:1. After the merger, the capital of the merged entity will reach Rs 4.72 arba, and will issue a further 60% right. After the issuance of right share, its paid up capital will reach Rs 7.55 arba. As per NRB’s requirement for all commercial banks to maintain a minimum paid up capital of Rs 8 arba by the end of FY 2073/74, JBNL aims to hike the paid up target by issuing bonus shares.