Siddhartha Insurance Limited’s preliminary auction cut-off stands at Rs.616 for ordinary shares and Rs.162 for promoter shares

NMB Capital has concluded the bid opening for the auction of 37,216.50 unit right shares of Siddhartha Insurance Limited (SIL).

As per the information provided by the issue manager, the preliminary cut off for the ordinary shares stood at Rs.616 and cutoff for the promoter shares stood at Rs.182 per share. The applicants placing their bids above or equal to the cutoff price will be allotted with the shares. However, NMB Capital has clearly stated that this is not the final result.

NMB Capital received 668 applicants for ordinary shares while the maximum bid for the same was Rs.648 per share. Only 3 applications were received for promoter shares among which one application was deemed invalid and the other placed a bid of Rs.162 per share.

The insurance company had been auctioning 799.60 unit promoter shares and 36,416.90 unit ordinary shares that had remained unsold in the 35% right offering.

As on Monday, the LTP of the insurance company stands at Rs.648 per share.

After the adjustment of 35% right shares, its paid-up capital will reach Rs.86.59 Crore. As per the directive of the Insurance Board, the company still has to raise capital of Rs.13.41 Crore to fulfill the minimum capital requirement of Rs.1 Arba.