Preliminary cut off price for auctioned ordinary shares of Machhapuchchhre Bank at Rs 304; promoter cut off at Rs 157

Machhapuchchhre Bank Limited (MBL) had auctioned 1,40,740.24 units ordinary shares and 20,002.40 units promoter shares a from Kartik 5, 2074 till Kartik 14, 2074. The bids were opened yesterday at NMB Capital Limited at 3:30 PM. An official of NMB Capital, the issue manager of the auction, informed that the cutoff price for its 1,40,740.24 units ordinary shares has been set at Rs 304. Highest bid amount of Rs 381 was received. Total 4,839 applicants submitted their bids for ordinary shares. Likewise, for 20,002.40 units promoter shares the cut off price was set at Rs 157.The highest bid amount  of Rs 217 was received. Total 7applicants submitted bids for promoter shares. “The data are preliminary, final output may vary,” added the official The bank has earned net profit of Rs 1.30 arba until the end of fourth quarter of FY 2073/74. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, MBL has to issue a further capital hike of Rs 61 crore (around 8.25%). MBL has announced 9% bonus shares and 6% cash dividends to its shareholders from the net profit it had earned in the FY 2073/74 and successful bidders of the auction are also entitled for proposed dividends. Its LTP stands at Rs 316 as of last trading day.