Most of those who bid below Rs 135.5 won’t get Nepal Bank’s auctioned shares as two bidders, including LIC-Nepal, steal the show
Wed, Sep 25, 2013 12:00 AM
ShareSansar, Sept 25:
Most of those who have bid below Rs 135.5 for the auctioned unclaimed rights shares of Nepal Bank Limited will not get these shares, something which ShareSansar.com had reported yesterday.
This was established as the bid opened today. Life Insurance Corporation of Nepal (LIC-Nepal) has bid for 10 lakh units as high as Rs 137 for the total auctioned shares of 24 lakh 90 thousand and 804 units. On top of that, one investment company has bid for all the shares at Rs 135.50.
“Now that LIC-Nepal has bid for 10 lakh units of the shares and another investor has bid for everything for Rs 135.50, most of those who have bid below Rs 135.50 will be disappointed,” a source privy of the auction said.
The name of this investor could not be independently verified.
The bid is managed by Civil Capital Markets Limited had opened this morning at Kamaladi.
More than 1,100 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.
