Prime Bank share auction: Rs 430 cut-off for ordinary; Rs 192 for promoter scrip

ShareSansar, March 28:

Prime Commercial Bank Limited has concluded the auction of 5,89,125 units of unclaimed promoter shares and 53,415 units of ordinary shares.

According to the sources at the issue managers, there has been a tie at Rs 430 per unit at the cut off price for the ordinary share.

There were more than 650 applicants for the auction of Prime’s ordinary shares.

The highest bid amount for the ordinary scrip stands at Rs 490.

It may be noted that the ordinary share of Prime Commercial Bank had traded for Rs 470 on Thursday, the last trading day.

Insofar as the promoter shares are concerned, the final figure is emerging though the cut-off price so far is Rs 192.

The cut off might come down to Rs 191.19 upon the final calculation and that a buyer has bid for that amount, too, sources said.

There were 44 applicants for the promoter shares, and Sabita Agrawal bid the highest at Rs 202.11 for 47,000 units, according to the sources.

An interesting thing about the promoter share auction is that four companies with significant stake of the Bishal Group have applied for the auction at different prices.

LICN bid for 2 lakh units at Rs 192, United Distributor Private Limited bid for 1.75 lakh units at Rs 195, Global Trading Concern bid for 40 thousand units at Rs 193 and Puja International has sought 34 thousand units at Rs 192.34.

Apart from these companies, ALICL has bid for 50 thousand units at Rs 201, Prudential Insurance has applied for 35 thousand units at Rs 192.5 while Bodh Prakash Tripathy has bid for 4,000 units at Rs 200 and Dhruva Raj Tripathy have 20, 850 at Rs 195.9.

The last traded price of Prime’s promoter share is Rs 148.

According to the sources who are closing following the bank, Prime, which has been consistently giving a good dividend to the shareholders, is expected to come up with an impressive third quarterly report.

It may also be noted that 19 percent of the promoter shares of the bank is soon to be converted to ordinary shares.

The minimum bid price for all the 6,42,540 units of scrips was fixed at Rs 100 and the bidders had to apply for a minimum of 100 units, according to the issue manager Civil Capital Market Limited at Kamaladi, Kathmandu.

The bank had invited the bids from March 6.

The bids had opened on Thursday to conclude the auction.