NT shares to be allotted

Kathmandu, April 30:

Citizen’s Investment Trust (CIT) — the issue and sales manager of the Nepal Telecomm (NT) shares — is ‘ready’ to allot NT shares.

“After we get green signal from the finance ministry, we will allot NT shares,” a senior officer at the CIT, said, adding that CIT is sending complete data to finance ministry on Friday.

The investors have quoted a maximum of Rs 2,550 to the lowest of Rs 600 for a share that is quoted Rs 600 minimum, after adding Rs 500 premium to 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 and return.

The CIT has received

applications from 27,617 applicants for 53,48,452 units of shares, 1.51 million less out of the floated 75 million units for the public.

However, in terms of money, it has been ‘successful’ to collect Rs 3.62 billion, he said.

The government had planned to raise at least Rs 9 billion by selling 1.5 billion units of NT’s share — Rs 4.5 billion in the first phase from 75 million units of shares and Rs 4.5 billion in the second phase from the 75 million units, later.

“The government has almost succeeded in its target as Rs 3.62 billion has been collected,” he said, adding that the amount falls short of a little less than a billion only. “Given the slackness in capital market at the time of NT’s share floatation and negative campaign, its a ‘huge’ success,” he added.

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 subsidized rate of Rs 90 per unit.

The government plans to utilise the amount collected from the sale of NT’s equity for rural infrastructure development and expansion of telecommunication services.