RBB to open bid from Bhadra 16 for auction of NIBL, Nepal Awas crossholding

ShareSansar, August 22:

Rastriya Banijya Bank Ltd (RBBL) has announced the call for the sealed bidding of its crossholding -- 15 percent promoter shares each of Nepal Investment Bank Limited (NIBL) and Nepal Awas Biask Bank Limited.

According to the notice published by the bank’s issue manager Nabil Investment Banking Ltd today, the interested individuals or firms can apply for the minimum of 100 shares while they can bid for the maximum units divided by 10. The bidding will be opened from Bhadra 16 till Bhadra 30.

The minimum per unit share price has been set for Rs 530 for NIBL and Rs 101 for Nepal Awas, which means that the investors must quote at least Rs 531 for the NIBL per unit shares and Rs 102 for the Nepal Awas.

According to the notice, the interested investor can get the tender form from various collection centers at RBBL’s branch offices inside Kathmandu and outside the valley as well as Nabil Investment’s office at Naxal of free of charges.

Investors can collect the forms from RBBL’s branch offices Bishalbazar, Thapathali, Banseswor, Maharajgunj, Gaushala, Bhotahiti, Teku, Kalanki in Kathmandu, Pulchowk in Lalitpur and Suryabinayak branch office in Bhaktapur.

Similarly, they can get the forms from Banepa, Chitwan, Biratnagar, Dharan, Hetuada, Bhairhawa, Butwal, Nepalgunj, Mahendrapul in Pokhara, Birtamod, Janakpur, Bidur, Birgunj, Dhangadhi, Tulsipur, Lahan and Kanchanpur branches outside the Kathmandu valley.

The bank will allot the shares based on higher quoted price, according to the notice.

RBB had been finding hard to off load more than 62.20 lakh units of promoter shares of NIBL and 1.58 lakh units of Nepal Awas promoter shares despite repeated attempts. RBBL took the approach of public auction of those shares after its all earlier attempts went into vain.

The central bank had barred the dividends from these BFIs to the RBBL after the government owned bank could not divest its crossholding within the deadline of last fiscal year end set by the central regulators. Dividend would be released only after all the cross-holdings ends.