Except for few, all to get Nepal Telecom shares
Kathmandu, May 14:
Except for few applicants those whose forms lack necessary documents and signature — like not signed forms, not submitted citizenship certificate and child’s birth certificate in case of under age — all will get Nepal Telecom’s (NT) shares.
“Applications for more than 40,000-unit shares are in withheld due to ‘technical’ reasons,” said a senior official at the Finance Ministry as the ministry today gave a go ahead to the Citizen’s Investment Trust (CIT) — the issue and sales manager of the NT shares — to allot
“We got green signal from the Finance Ministry today,” Anil Dhakal, officer at the CIT, said, adding that CIT is planning to make it public on Friday.
“Last Friday, the CIT had sent the final data to the Finance Ministry for approval.”
The CIT had received 27,617 applications for 53,48,452-unit of shares, 1.51 million-unit less out of the floated 75 million-unit for the public.
“Out of the total units applied, allotment of more than 40,000-unit will be withheld for the time being due to the applicants ‘technical’ faults,” Finance Ministry official said, adding that the ministry will decide on them afterwards.
The investors have quoted a maximum of Rs 2,550 to the lowest of Rs 600 for a unit share that is quoted Rs 600 minimum — after adding Rs 500 premium to the face value of Rs 100 for each unit.
The highest number of the investors, which is at 16,157 have bidded in between Rs 601 to Rs 700, the most logical price for the NT share, according to its book value, profitability and return.
The government has collected Rs 3.62 billion, though it had planned to raise Rs 4.5 billion in the first phase from selling 75 million-unit of shares now and Rs 4.5 billion in the second phase from selling 75 million-unit, later.
The government has almost succeeded in its target — as the collection falls short of less than
a billion only — despite ‘negative’ campaign and slackness in the capital market during the call for the NT shares bid.
As a part of divestment and privatisation plan, the government has started selling NT’s 10 per cent shares to public through an auction. It had already sold five per cent to the Telecom’s employees at the subsidised rate of Rs 90 per unit.