Bids Received in Auction of NLG Insurance Company Ordinary And Promoter Shares Opened; What is the Cut-Off Rate?

NLG Insurance Company Limited (NLG) opened the bids for its unclaimed right shares auction on Falgun 1. LS Capital was appointed as the auction manager. The bidding process took place at the Agrawal Bhawan premises in Kamalpokhari, Kathmandu, starting at 8:30 am.

The auction opened on 20th Magh and concluded on 27th Magh, 2081 at the end of banking hours. In total 29,977.31 units of promoter right shares and 2,90,555.91 units of ordinary right were auctioned. Individuals and companies were all eligible to bid in the auction.

This is the unclaimed portion of the rights offering. The company opened a 10:6.256 ratio right share issue to its shareholders from 11th Mangsir to 16th Poush, 2081. The same unsold right shares were auctioned to the general public.

The minimum bid rate for the auction was Rs. 100. While the minimum bid quantity for shares was 1,000 units, there was no upper limit. Although bidders could bid for the entirety of the issue, they were required to abide by the regulatory body's rule not to exceed the specified quantity of shares per entity.

According to the auction manager, a total of 1,311 applicants placed bids for 2,90,555.91 units of ordinary right shares, and 6 applicants placed bids for 29,977.31 units of promoter right shares. The tentative cut-off rate is Rs. 951 whereas the maximum bid rate stood at Rs. 1,131. Once all of the checks get reconciled and cleared, the cut-off price may vary.

The last traded price of the scrip stands at Rs 1,100.00 per share.