City Hotel Limited (CITY) has announced the auction of 21,50,418 units of unsold right shares, including promoters’, employees’, and ordinary shares, following its previous 1:0.80 rights offering. The auction will be open to the public from 23rd Kartik to 30th Kartik, 2082, providing an opportunity for investors to acquire unclaimed shares.
The company had previously issued a total of 1,32,00,000 right shares, of which 1,12,41,582 units (85.22%) were allotted to valid applicants. However, 19,50,418 units (14.78%) remained unclaimed by eligible shareholders.
Details of the Shares to be Auctioned of City Hotel
The auction will include:
- Promoter lock-in shares: 19,80,999 units (to remain locked until Jestha 04, 2083)
- Employee lock-in shares: 6,000 units (also locked until Jestha 04, 2083)
- Public shareholder shares: 1,54,419 units
These shares represent the unclaimed portion of the rights offering conducted from 23rd Bhadra to 26th Ashwin, 2082, in a 1:0.80 ratio.
Eligibility and Bidding Information
All interested individuals, companies, and institutions are eligible to participate in the auction. Prabhu Capital Limited has been appointed as the issue manager to oversee the process.
The minimum bid rate for the shares is set at Rs. 100 per unit, while the minimum bid quantity for ordinary shares is 100 units. Although bidders can place bids for the entire issue, they must comply with regulatory guidelines, which restrict the quantity of shares that can be allotted to a single entity.
Investor Opportunity
This auction offers an important opportunity for investors to acquire shares in City Hotel Limited that were previously unclaimed during the rights issue. By participating, investors can gain exposure to the company’s growth while ensuring fair allocation under regulatory norms.
The auction is expected to attract significant interest from both domestic and institutional investors, further supporting liquidity and shareholding diversification for City Hotel Limited.
