HIDCL Postponed Auction Update: Company Returning Bids and Refunding Bidders
Hydroelectricity Investment and Development Company Limited (HIDCL) is refunding the bids received in the auction of its 3,30,00,000 shares.
The company had been auctioning its promoter right shares from Falgun 01. The auction was supposed to conclude on Falgun 15, 2078, but it had to postpone the auction on SEBON's instruction.
Earlier, the company concluded the 1:1 ratio right shares issue on Bhadra 08, 2078. 11,00,00,000 units right shares were issued from 5th Shrawan. The hydropower company declared the book closure date for its rights offering on Jestha 28, 2078. Thus, investors maintained before that day were eligible to apply for the shares.
3,30,00,000 promoter right shares were unclaimed by eligible promoters. Thus, the same shares were being auctioned. Note that the other 7,70,00,000 shares have already been listed in NEPSE.
Rs. 100 was the minimum bid rate for 3,30,00,000 promoter shares. The minimum bid quantity was 100 unit shares. Individuals, institutions, and companies were all eligible to bid for the auction. Global IME Capital had been appointed the auction manager.
It was confusing as to whether the shares will trade as promoter shares or ordinary shares. The regulatory board SEBON communicated back and forth with the company and the central bank, the details of which can be found under the company's news section on Sharesansar's portal.
SEBON then issued a notice to the company that it could return and refund the bids received in the auction while the investigation continues. As such, keeping the bidders' best interest in mind, HIDCL has started refunding the bids from today, i.e. Chaitra 04, 2078.
In order to get a refund,
1) The bidder should visit the collection center where they submitted their bids with the registration slip handed to them earlier, along with their citizenship certificate or equivalent document for proof of identity. The bidder should fill out an application form as directed by the company.
2) The bidder should submit the statement of the original bank voucher/ IPS to get the refund if they transferred the fund via bank voucher or IPS. The amount will be refunded the very next day.
3) HIDCL will provide a cheque cancellation letter to those who submitted a good for payment cheque. In this case, the bidder should submit an application along with the cheque.
