Muktinath, City development banks wrap up allotment of auctioned rights shares

Jashma Sainju

ShareSansar, February 20

The auction of unclaimed rights shares of Muktinath Bikas Bank Limited (MNBBL) and City Development Bank Limited (CDBL) were completed recently.

Muktinath had closed the bids for the auction of 38,426.50 units of its unclaimed right shares, floated for both promoters and ordinary shareholders, on February 11.

An official with Growmore Merchant Bank, which managed the auction for Muktinath, informed that the bank set the cutoff price for the ordinary shares at Rs. 560. The highest bid amount the shares received was Rs 601. Out of 255 applicants who submitted their bids for 38,426.50 units of ordinary shares only 25 got the shares.

Likewise, the cutoff for promoter rights shares, for which 11 applications were received, was set at Rs 203. The highest bid amount for 12,872.50 unit shares was Rs 251 and the minimum bid amount was Rs 177. Out of 11, only 5 applicants were allotted the shares.

The auction provided a good chance for the investors to purchase the ordinary shares of the bank at a low rate as they were traded at Rs 581 in the secondary market on Wednesday, Feb 11, as per the latest available trading data.

Meanwhile, City Development Bank had closed the bids for the auction of 65,191 units of its unclaimed rights shares on February 11. The bank had set the cutoff price for the ordinary shares at Rs 341. The highest bid amount received for the shares was Rs 381. Out of the total 327 applicants, only 41 were able secure the bids.

The last trading price of the shares stood at Rs 372 on Wednesday, i.e. Feb 18. And the CDBL price on the last day of auction stood at Rs 371 per unit.