Bids Received in Auction of BFC's Shares Opened; What is the Cut-Off Rate?

Best Finance Company Limited (BFC) has opened the bids received in the auction of its 58,429.90 units of ordinary shares and 556,674.57 of promoter shares today, i.e. 21st Falgun. Prabhu Capital was appointed the auction manager. Bids were opened today morning at the premises of the auction manager, Kamaladi, Kathmandu.

The auction opened from 1st Falgun to 15th Falgun, 2079. A total of 615,104.47 unit shares including 58,429.90 ordinary shares and 556,674.57 promoter shares were auctioned. Earlier, the company issued 1:1.3 ratio right shares i.e 1,652,850.00 units to its eligible shareholders from Bhadra 27 till Kartik 14, 2074. The remaining unclaimed right shares were open for auction from the date mentioned above.

The existing promoters, the general public, and institutions were all eligible to bid for the auction. Rs. 100 was the minimum bid rate for the auction. The minimum bid quantity for promoter shares was 1000 units and for ordinary shares was 100 units. Although bidders could bid for the entirety of the issue, they were required to abide by Nepal Rastra Bank's rule to not exceed the specified quantity of shares per entity.

According to the auction manager, the tentative cut-off price for the ordinary shares and promoter shares stood at Rs. 288 and Rs. 110.20 respectively. Once all of the cheques get reconciled and cleared, the cut-off price and units may vary.