Preliminary cutoff price of 2.66 lakh units auctioned ordinary shares of Tourism Dev Bank at Rs 231.01; promoter shares not fully subscribed

Tourism Development Bank Limited (TDBL) had auctioned 4,38,200.80 units promoter shares and 2,66,537.20 units ordinary shares from Asadh 7 to Asadh 15, 2074. The bids were opened last Friday. As per an official of NIBL Capital Markets, the issue manager of the auction, tentative cutoff price for ordinary shares stood at Rs 231.01. All ordinary shares were subscribed in this auction. However, not all promoter shares were subscribed. All bidders who had applied for promoter shares got the shares. A separate notice auctioning the promoter shares will be published later. As per the official, the cutoff price will likely be endorsed by the bank’s BOD tomorrow. Refunds for non-allottees will be issued 3 days after endorsement by the bank’s BOD. TDBL has earned net profit of Rs 20.09 crore in the third quarter of the FY 2073/74. After the adjustment of right and proposed 9.30% bonus shares, the paid up capital of TDBL will reach Rs 2.01 arba. TDBL is yet to hold its FY 2072/73 AGM. It has signed an agreement for merger with Mega Bank Nepal Limited (MEGA) due to which their trading is in halt in NEPSE. Mega Bank is also issuing 65% right share to its shareholders. The share swap ratio for merger has been set for 100:95 (95 shares of Mega Bank for 100 shares of Tourism Dev Bank). After the merger, the paid up capital of the merged entity will reach around Rs 9.48 arba. Tourism Development Bank’s LTP stood at Rs 427 (to be adjusted to Rs 263 for 100% right share) as of its last trading day.