Sindu Bikas Bank allots 3,001 unit promoter shares in auction; some 5.35 lakh shares still not subscribed

Sindu Bikas Bank Limited (SINDU) has allotted its 3,001 unit promoter shares on Magh 22, 2074. Out of the total 5,38,302.40 unit promoter shares which remained unsubscribed after its 10:8 right issue, the development bank had kept the shares in auction from Magh 2 to Magh 10, 2074. Now, the non-allotted bidders will start receiving their money back to their respective bank accounts from Magh 23, 2074. Those not mentioning their account numbers in the bid application will receive the money back via account payee cheques, as per the notice. With this auction that was not responded quite well by the investors, SINDU further has some 5.35 lakh unit promoter shares which needs to be auctioned again. Considering SINDU’s current price in the market, the cut off price for these promoter shares have been slightly above Rs 100 per shares. The current bearish market trend as well as the shortage of investable funds are supposed to have taken its toll over this auction process. When re-auction process is resumed, interested applicants who meet the criteria to bid for promoter shares will be eligible to apply for the remaining shares. After the adjustment of the rights shares, the bank’s total paid-up capital will reach Rs 47.19 crore from the existing Rs 26.21 crore. The bank has authorized capital of 70 crore. As per NRB’s directive for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, SINDU will need to issue a further capital hike of around 6%. SINDU has earned net profit of Rs 1.10 crore in the second quarter of the FY 2074/75.