As the deadline for banks and financial institution (BFIs) to sell off their cross-holding approaches, two state-owned BFIs are struggling to find buyers get divest such shares.NIDC Development Bank has called for a closed bid auction to sell 1.8 million units of promoter shares that it holds in Nabil Bank. The state-run bank published a public notice on Monday, asking interested individuals or firms to bid for the shares within 21 days of the publishing of the notice.
Nepal Rastra Bank (NRB), which has been postponing the deadline time and again, has given BFIs a new deadline - by the end of the current fiscal year - to divest such shares.
NIDC has set minimum bid amount at Rs 1,254 per share, Rs 4 higher than the last traded price.
The price of Nabil Promoters share gained Rs 45 on Monday to close at Rs 1295.According to NIDC, interested investors can bid for a minimum of 100 units of shares.
NIDC Bank had 6.15 percent stake, or 1,498,914 units of promoter shares, in Nabil Bank. It sold 422,633 units of shares through closed bidding auction in April last year. At that time, it had set the minimum bidding price at Rs 1,022 per share.
Stock analysts say the NIDC is not finding buyers for the shares because of large quantity of shares on offer and the price factor. “The price quoted by NIDC is high compared to trading price (of Nabil Promoters share) at the Nepal Stock Exchange (Nepse),” Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), told Republica. “The story would have been different had the market been on bullish run.”
Along with NIDC, Rastriya Banijya Bank (RBB) - another state-owned entity - has also not been able to divest its 6.2 million units of shares in Nepal Investment Bank Ltd and another 196,000 units at Nepal Aawas Finance Ltd.
“We´ve been failing to get the buyers despite our repeated attempts,” Krishna Prasad Sharma, CEO of RBB, told Republica. “We are preparing new a new strategy to offload the shares.”
source: republica,31 march 2014
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Nepal Rastra Bank (NRB), which has been postponing the deadline time and again, has given BFIs a new deadline - by the end of the current fiscal year - to divest such shares.
NIDC has set minimum bid amount at Rs 1,254 per share, Rs 4 higher than the last traded price.
The price of Nabil Promoters share gained Rs 45 on Monday to close at Rs 1295.According to NIDC, interested investors can bid for a minimum of 100 units of shares.
NIDC Bank had 6.15 percent stake, or 1,498,914 units of promoter shares, in Nabil Bank. It sold 422,633 units of shares through closed bidding auction in April last year. At that time, it had set the minimum bidding price at Rs 1,022 per share.
Stock analysts say the NIDC is not finding buyers for the shares because of large quantity of shares on offer and the price factor. “The price quoted by NIDC is high compared to trading price (of Nabil Promoters share) at the Nepal Stock Exchange (Nepse),” Anjan Raj Poudyal, former president of Stock Brokers Association of Nepal (SBAN), told Republica. “The story would have been different had the market been on bullish run.”
Along with NIDC, Rastriya Banijya Bank (RBB) - another state-owned entity - has also not been able to divest its 6.2 million units of shares in Nepal Investment Bank Ltd and another 196,000 units at Nepal Aawas Finance Ltd.
“We´ve been failing to get the buyers despite our repeated attempts,” Krishna Prasad Sharma, CEO of RBB, told Republica. “We are preparing new a new strategy to offload the shares.”
source: republica,31 march 2014
LINK
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