SICL share auction: Rs 806.5 cut-off price; Rs 900 highest bid amount

ShareSansar, July 2:

The auction of unclaimed right shares of Shikhar Insurance Company Limited has been successfully completed.

After opening of the closed bids at the office of NIBL Capital Markets Limited at Lazimpat
yesterday afternoon, officials informed that the cut-off price for the ordinary share was Rs 806.45, and the highest bid amount was Rs 900.

There were altogether 105 applicants among whom 105 have bid at or above the cut-off price, they further informed. There was only one bidder at Rs 900.

The auction provided a good chance for the investors to clinch the ordinary shares of the insurance company at a low rate as its last traded price stood at Rs 897 yesterday.

The company had closed the bids for the auction 10,157 units of its unclaimed right shares on June 30.

As the minimum price set for the auction is Rs 100, the bidders have to quote more than that amount for the auction.  

The bidders had to bid for at least 100 units of the ordinary shares and 10,157 at the most.  The total bid amount had to be deposited in advance.

Shikhar Insurance had auctioned the unclaimed ordinary shares following the closure of the issuance of 2:1 right shares, which it announced during its last Annual General Meeting for the fiscal year 2068/69.

The insurer had floated the right shares of the face value of Rs 100 on April 13.