Nepal SBI to close its share auction today, likely to be oversubscribe

Sharesansar, Decenber 15:

Nepal SBI bank is closing the auction of 89763.96 units of ordinary shares today. It’s likely to attract more money then offered shares.

“We have got about 650 applications till Sunday, we hope it will be oversubscribe by times”,  said Shreejesh Ghimire, Chief Executive officer of NMB capital. “There is more possibility of increase in number of application on the last day”, he further added.

Out of the total 89,763.96 units; 79,790.19 units are unsubscribed (2:1 ratio) Right Share which was approved by the bank 15th AGM and the remaining 9,973.77 units and cancelled bonus share of over the years by the bank. The auction process will open today till 3:00 PM at the NMB Capital Limited’s Head office at Babarmahal, who is managing the issue.

As the minimum bid price set for auction is Rs 100, the bidders have to quote more than that amount to participate in the auction process. The bidders with the maximum amount will be allocated shares as per the published notice by the bank.

Minimum bid for at least 100 units of the ordinary shares is required while they can bid for the maximum units divided by 10.  The total bid amount must be deposited in advance in the given account number. The investors applying for more than Rs 10 lakh must compulsorily submit their PAN number. The bids will be opened to complete the auction on Poush 1, 2071.

Nepal SBI is auctioning the unclaimed ordinary right shares which were issued almost five years back. According to bank, Investors will be entitled to the proposed 22 percent dividend which includes 15 percent bonus shares and 7 percent cash dividend of the last fiscal year 2070/71.  The last traded price of SBI on NESPE was Rs 1000 traded on Sunday.