Shine Resunga opens bids to auction 2.59 lakh units of promoter, ordinary shares

ShareSansar, August 12:

Shine Resunga Development Bank is going to auction it’s a total of 2, 58,626 units of shares.

According to a notice published by the development bank today, it is going to auction its 1, 77,792 units of promoter shares and 80,834 units of ordinary shares after the rights shares issued on May were not subscribed by the investors.

The bank had opened the rights shares back on May 23 and closed on June 26 without any subscription from the investors.

Shine has asked for sealed quotations from interested existing promoter shareholders who want to buy promote shares and any individual or institutional investors who want to buy ordinary shares from August 12 to August 21.

Investors can bid for the shares quoting the amount of shares to be bought and the price per unit they are willing to pay in a sealed tender document and submit it to its issue manager and share registrar Growmore Merchant Banker Limited office at Durbar Marga Kathmandu or bank’s corporate office in Butwal by August 21.

According to the Shine bank notice, the interested investor can get the tender form from Growmore or bank office itself upon paying Rs 25.

The bank has fixed Rs 100 as a minimum price to be quoted for per unit share which means that the investor should at least quote Rs 101 for the per unit share in their tender form.
 
The bank’s share price (closing) in the Nepal Stock Exchange (Nepse) was Rs 478 as of last Thursday.

According to the fourth quarterly report of the bank published on July 28, it has posted 87 percent profit rise in the last fiscal year 2070/71. The bank has earned a net profit of Rs 16.19 crore in last year.

While an investor can apply for minimum 100 units of shares, there is no limit towards the maximum number of shares for the investor to apply.

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

The bank in its notice also said that the auction will be held on August 24.

The current paid-up capital of the development bank, which was formed last year following the merger between Shine Development Bank Limited and Resunga Bikas Bank Limited, stands at Rs 38.38 crore.