Neco Insurance to auction unclaimed 92,893.23 units right shares at Rs 100 & above; LTP at Rs 1175

Neco Insurance Company Limited (NIL) will be auctioning its unclaimed ordinary and promoter right shares to the general public from Jestha 5, 2074. As per the notice published by the insurance company today, it is selling 86,729.53 units ordinary shares and 6,163.79 units promoter shares after the right shares issued on Falgun 3, 2073 were not fully subscribed by its shareholders. NIL had offered right shares in the ratio of 1:1. The auction will last till Jestha 11, 2074 and the bid will open to conclude the auction on Jestha 12, 2074 at 1:30 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 shares. NMB Capital Limited is the issue manager for this auction. The bank has urged interested bidders to submit their bids within 3:00 PM till Jestha 11, 2074 at NMB Capital Limited, Naxal, Kathmandu. The investors applying for the auction can deposit the bid amount in the account number 00130600054010000182 maintained in the name of NMBCL-NIL Right 2073/74 at NMB Bank. Bidders can also apply through a Good For Payment cheque made in the name of NMB Capital Limited NIL had earned net profit of Rs 7.33 crore up to the second quarter of the FY 2073/74. Its paid up capital after 100% right share capitalization will reach Rs 64.80 crore. As per Insurance Board’s directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of FY 2074/75, NIL will need to issue a further capital hike of Rs 35.20 crore (around 55%). Its last traded price (LTP) stood at Rs 1175 as on May 3, 2017.