Cut-off Price Higher Than LTP: Bids Opened for Auctioned Shares of Chhyangdi Hydropower (CHL)

Chhyangdi Hydropower Limited (CHL) has opened the bids received in the auction of its shares. The bids were opened at the premises of the auction manager Global IME Capital starting at 3 pm today, i.e. Chaitra 17.

The auction for the hydropower company's right shares opened on 1st Chaitra and concluded on 9th Chaitra, 2078 at the end of banking hours. 59,827 units of ordinary shares (unsold right shares) were auctioned. This is the unclaimed portion of the rights offering that closed on Falgun 02, 2078. The issue had opened on 11th Magh. A total of 8,93,025 shares were issued to eligible shareholders at a par value of Rs. 100 per unit. 28,311 eligible applicants were allotted 8,33,191 shares. Thus, the remaining 59,827 shares were then auctioned.

Rs. 100 was the minimum bid rate for the auction. While the minimum bid quantity for shares was 100 units, there was no upper limit. 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 Global IME Capital, the tentative cut-off price is Rs. 409. CHL closed at Rs. 406 in the secondary market today. When the auction closed on March 23, the LTP was Rs. 451.