Machhapuchchhre Bank extends 1.60 lakh unit auction till Kartik 14; LTP at Rs 317

Machhapuchchhre Bank Limited (MBL) is closing its auction for 1,60,742.64 units unclaimed right shares  tomorrow (Kartik 14, 2074). As per the notice published in newspaper today, one day has been extended for the submission of bid for auction shares. The commercial bank is auctioning 1,40,740.24 units ordinary shares and 20,002.40 units promoter shares after the right shares issued from Shrawan 5, 2074 to Bhadra 5, 2074 were not fully subscribed by its shareholders. The bank had floated a total of 79,18,440 units right shares in the ratio 10:1.2 and around 2.03 % right shares were left unclaimed. The auction was open from Kartik 5, 2074 and the bids will be opened to conclude the auction on Kartik 15, 2074. NMB Capital Limited is the issue manager for this auction. 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 shares. Interested investors can collect bid forms from NMB Capital Limited, Nagpokhari, Kathmandu and submit their bids within office hours on Kartik 13, 2074. The bank has urged all bidders to deposit the bid amount in account number 00130100054010000005 maintained in the name of NMB Capital Limited at NMB Bank Limited. MBL’s paid up capital currently remains at Rs 6.59 arba. After this right share adjustment, its paid up capital will reach Rs 7.39 arba. Its authorized capital is Rs 10 arba. The bank has earned net profit of Rs 1.30 arba until the end of fourth quarter of FY 2073/74. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, MBL has to issue a further capital hike of Rs 61 crore (around 8.25%). MBL has announced 9% bonus shares and 6% cash dividends to its shareholders from the net profit it had earned in the FY 2073/74 and successful bidders of the auction are also entitled for proposed dividends. Its LTP stands at Rs 317 as of last trading day.