Cut off price of Sindhu Bikas Bank

Sindhu Bikas Bank Limited (SINDU) has concluded the auction.

As per an official of NIBL Capital Markets Limited, the issue manager for the auction, the cut off price of the ordinary shares stood at Rs 125 whereas for promoter shares, cut off price was Rs 105.

SINDU had open application for the auction from Poush 4 to Poush 11, 2074.

It had sold 1,42,102.60 units ordinary shares and 5,66,872.40 unit promoter shares after the right shares issued on Bhadra 18 to Kartik 5, 2074 were not fully subscribed by its shareholders. It had offered right shares in the ratio of 2:1. Around 33.80 % shares were unsubscribed. But all the promoter shares were not sold through the auction. Now, the development bank will later publish the notice regarding the remaining promoter shares.

After the adjustment of the rights shares, the bank’s total paid-up capital will reach Rs 47.19 crore from the existing Rs 26.21 crore. The bank has authorized capital of 70 crore. As per NRB’s directive for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, SINDU will need to issue a further capital hike of around 6%.

SINDU has earned net profit of Rs 10.01 crore in the first quarter of the FY 2074/75.

Its LTP stood at Rs 170 as of last trading day.