22 August 2024, Kathmandu
National Fund Management has announced the auction of 11.72 lakh unsold shares at a fixed price of Rs. 50 per share.
National Fund Management
These shares, which belong to the undistributed rights shares of the founding group, will be available for sale through an auction process from August 29th to September 5th. The decision to auction the remaining shares follows the company’s earlier rights issue, which saw a substantial portion of the offered shares go unsold.
In a recent rights offering, the company decided to issue shares at a 2:1 ratio, equivalent to 50% of the paid-up capital, which stands at Rs. 54 crores. This initiative involved the release of 5.4 million right shares, valued at Rs. 27 crores, offered at a face value of Rs. 50 per share. The rights issue was open for subscription from Aug 3rd to Aug 6th, providing existing shareholders the opportunity to increase their stakes. Despite the offering, a total of 11.72 lakh shares remained unsubscribed by the close of the subscription period.
To address the unsold shares, National Fund Management has opted to auction these shares, inviting interested investors to participate in the bidding process. The company has set a minimum bid requirement of 20,000 shares, with the price per share fixed at Rs. 50 or higher, depending on investor interest. The auction will be conducted in a confidential manner, ensuring that the bid details remain undisclosed until the process is completed.
Sanima Capital, a reputable name in financial management, has been appointed as the share sale manager for this auction. The company has urged potential investors to submit their bid applications promptly, as the auction period is limited. This sale represents a significant opportunity for investors to acquire shares in National Fund Management at a competitive price, potentially offering a lucrative investment opportunity in the long run.