Preliminary Cutoff price for 7,983 units auctioned ordinary shares of Siddhartha Insurance at Rs 1607.22

Siddhartha Insurance Limited (SIL) had auctioned 367 units promoter shares and 7,983 units ordinary shares from Shrawan 16 to Shrawan 23, 2074. The bids were opened today at NMB Capital at 3 PM. As per an official of NMB Capital Markets, the issue manager of the auction, the preliminary cutoff price for 7,983 ordinary shares stood at Rs 1607.22. The highest bid amount for the auction shares received was around Rs 1651. Total 87 applicants submitted their bids for ordinary shares. Only 2 applicants submitted  bid for the promoter shares. Only one  bidder grabbed all 367 units shares at Rs 100 as another bidder was invalid. Siddhartha Insurance has earned net profit of Rs 14 crore in the 3rd quarter of the fiscal year 2073/74.  After the issuance of right shares, its paid up capital has reached Rs 53.45 crore. As per Insurance Board’s directive for all non-life insurance companies to hike their capital to a minimum of Rs 1 arba by Ashad 2075, SIL will need to increase its capital by further Rs 46.55 crore (around 88%). Its LTP stood at Rs 1,622 as on August 9, 2017.