City Hotel Limited (CITY) is set to auction a total of 21,50,418 units of unclaimed rights shares from its previous 1:0.80 rights offering, which ran from 23rd Bhadra to 26th Ashwin, 2082. Out of 1,32,00,000 shares issued, 1,12,41,582 units (85.22%) were allotted to valid applicants, leaving 19,50,418 units (14.78%) unclaimed by eligible investors.
The unclaimed portion comprises 19,80,999 units of promoter shares under lock-in, 6,000 units of employee shares under lock-in (both of which will remain locked until Jestha 04, 2083), and 1,54,419 units held by public shareholder groups. These shares will be auctioned to the general public from 23rd Kartik to 30th Kartik, 2082.
Eligibility and Auction Details of City Hotel
All interested individuals, companies, and institutions are eligible to participate in the auction. The minimum bid rate for the shares has been set at Rs. 100 per unit, and the minimum bid quantity for ordinary shares is 100 units. While bidders may apply for the entire issue, they must comply with the regulatory board’s restrictions, which limit the maximum number of shares a single entity can bid for. Prabhu Capital Limited has been appointed as the issue manager for this rights share auction, overseeing all regulatory and procedural requirements to ensure a smooth process.
Background of the Rights Offering
The previous 1:0.80 rights share offering was issued to all eligible shareholders to raise capital for business expansion and operational development. Despite strong shareholder participation, a portion of the shares remained unclaimed, now being made available to the general public through this auction.
This auction represents a significant opportunity for investors to acquire shares in City Hotel Limited, including promoter, employee, and public lock-in shares, and participate in the company’s growth trajectory.
