What Is the Cut-off Rate for Auction of Api Power Company's Shares? Auction Added over Rs. 13 Crore Non-Operating Income to the Company's Books

Api Power Company Limited has allotted its 13,46,218 units ordinary share via an auction to the general public.

Api Power Company Limited (API) had auctioned its 13,46,218 units ordinary shares from 6th Poush. The auction closed on 13th Poush, 2077.

The company had allotted its 1:0.4761 ratio right shares to its shareholders on 21st Mangsir, 2077. The hydropower company closed the issue of right shares on Mangsir 04. The issue of right shares totalling 56,70,000 units was open from 14th Kartik. Only 43,23,782 shares were allotted. Thus, the remaining 13,46,218 units were auctioned. The general public and institutions were all eligible to bid for the auction.

The allotment has concluded on 23rd Poush, 2077. According to the auction manager Siddhartha Capital, Rs. 202 is the cut-off rate for the auction. All the bidders bidding at the cut-off rate or higher are allotted the shares.

Given that the right shares were actually supposed to be given to existing shareholders at Rs. 100 per share, this auction gives Api Power Company Limited an extra profit of Rs. 102 (minimum) in each share allotted. Thus, this auction gave the company an extra income of Rs. 13,73,14,236 in minimum. Since some bidders obviously bid at a higher rate than the cut-off price, the actual non-operating income is higher than the approximated figure.

For those who were not allotted, the security deposit will be refunded on 27th Poush, 2077.