City Hotel Limited (CITY) opened the bids for its unsold promoter, employee, and ordinary lock-in shares auction on 5th Mangsir, 2082, with Prabhu Capital Limited appointed as the auction manager. The auction process took place at the premises of Prabhu Capital Limited in Kamaladi, Kathmandu, beginning at 9:00 am.
Auction Timeline and Participation
The auction had officially opened on 23rd Kartik, 2082, and concluded on 30th Kartik, 2082 at the close of banking hours. A total of 19,80,999 units of promoter right shares under lock-in, 6,000 units of employee lock-in shares (both locked until Jestha 04, 2083), and 1,54,419 units held by public shareholders were included in the bidding. All interested individuals, companies, and institutions were eligible to participate in the process.
This auction represents the unclaimed portion of the company’s rights offering. Previously, City Hotel Limited had issued a 1:0.80 ratio right share offering to its shareholders from 23rd Bhadra to 26th Ashwin, 2082.
Bidding Rules and Minimum Requirements
The minimum bid rate for the auction was set at Rs. 100, while the minimum quantity for bidding was 100 units of shares. There was no upper limit to the number of shares a bidder could submit, although all participants were required to follow regulatory guidelines that restrict exceeding the specified share quantity per entity.
According to the auction manager, the tentative cut-off rates are as follows: Rs. 276 for lock-in promoter shares, Rs. 312.50 for employee shares, and Rs. 467 for ordinary public right shares. These prices are provisional and may be revised once all checks and reconciliations are completed.
Market Context and Share Performance
The last traded price of City Hotel Limited’s scrip currently stands at Rs. 529 per share, indicating a positive market sentiment ahead of the auction. Market analysts note that the auction of unclaimed shares provides an opportunity for investors to acquire additional stakes at a potentially lower cost compared to the prevailing market price, while ensuring full utilization of the right share issuance.
