CIT Auctioning Remnant Right Shares; This Auction Can Add More than Rs. 1.38 Arba Non-Operating Income to the Company's Books
Wed, Feb 24, 2021 10:34 AM on Dividend, Bonus & Rights, Auction, Latest,
Citizen Investment Trust (CIT) is auctioning its 3,54,150.05 units of ordinary rights shares from 21st Falgun to 2nd Chaitra, 2077. Individuals, companies, and institutions are all eligible to bid for the auction.
Citizen Investment Trust (CIT) had recently allotted its right shares to applicants. The company had issued its 1:0.8284 ratio i.e., 1,35,92,592 units right share to its shareholders from Poush 28 till Magh 19, 2077. In the allotment, 12,640 investors were allotted a total of 1,32,38,378.95 shares.
The remaining shares will now be auctioned. While writing this, CIT has an LTP of Rs. 4,734. Thus, even if the shares are auctioned at an average price of Rs. 4,000 per share, CIT will earn Rs. 3,900 per share, given that the right shares were actually supposed to be given to existing shareholders at Rs. 100 per share. Thus, this auction will give the company an extra income of Rs. 1,38,11,85,195, if we assume that the shares will be auctioned away at an average price of Rs. 4,000 per share.
While the minimum bid quantity is 10 units, there is no upper limit. However, bidders are required to abide by Nepal Rastra Bank's rule to not exceed the specified quantity of shares per entity. The minimum bid rate is Rs. 100.
