Preliminary cutoff price for 12,503 units auctioned shares of Prudential Insurance stood at Rs 603; market price @ Rs 579

The cutoff price for auctioned 12,503 unit ordinary shares of Prudential Insurance Company Limited (PICL) is likely to stand at Rs 603. The bids were opened today at NIC Asia Capital, and Rs 603 was informed to be the preliminary cutoff price. The actual cutoff price might change once the bids are finalized. All applicants who had applied above Rs 603 will grab the shares, however, they will be in loss since the market price of PICL had fallen to as low as Rs 545 today in NEPSE. PICL eventually closed at Rs 579 when the market closed at 3 PM. Prudential Insurance had auctioned 12,503 units ordinary shares after the right shares issued from Poush 16 to Magh 21, 2074 were not fully subscribed by its shareholders. It had floated right shares in the ratio 10:3. Around 0.97% of the total issued right shares were unsubscribed. PICL has earned net profit of Rs 6.28 crore in the second quarter of the FY 2074/75. After the auction and right shares issue, its paid-up capital has reached Rs 64.15 crore. To meet the minimum paid-up capital requirement of Rs 1 arba by the end of FY 2074/75, it needs to further increase its capital by Rs 35.85 crore (around 56%).