Preliminary Cut off price for 3.71 lakh unit auctioned ordinary shares of Janata Bank stood Rs 282; cutoff for promoter shares at Rs 105

Janata Bank Limited (JBNL) had auctioned its 3,71,026 units ordinary shares and 3,96,526 units promoter right shares to the general public from Chaitra 1, 2073 till Chaitra 15, 2073. The bid was opened yesterday at 3:00 PM. An official of NCM Merchant Banking Limited, which managed the auction for Janata Bank, informed that the cut off price for its 3,71,026 units ordinary shares stood at Rs 282. The highest bid amount for the auction shares received was Rs 401. Total 1,273 applicants submitted their bids for its 3,71,026 units of ordinary shares. Similarly, for 3,96,526 units promoter shares, the bank set a preliminary cut off price of Rs. 105.  The highest bid amount for the auction shares received was Rs. 166. Total 51 applicants submitted their bids for 3, 96,526 units of promoter shares. “The data are preliminary as final data may vary. The shares will be allotted on Chaitra 22 and number of allottees will only be revealed at that time”, added the official. JBNL’s trading is in halt in Nepal Stock Exchange Limited (NEPSE) since October 28, 2016 following its merger with Triveni Bikas Bank Limited. Its last traded price stood at Rs 387 as on October 27, 2016. Janata Bank has earned net profit of Rs 16.13 crore in the second quarter of the fiscal year 2073/74 as per unaudited report. It is undergoing merger with Triveni Bikas Bank Limited with a share swap of 1:1. After the merger, the capital of the merged entity will reach Rs 4.72 arba, and will issue a further 60% right. After the issuance of right share, its paid up capital will reach Rs 7.55 arba. As per NRB’s requirement for all commercial banks to maintain a minimum paid up capital.