Last day to apply for 2.77 lakh unit promoter shares re-auction; Check out the company's performance

Today is the last day to Bid for 2.77 lakh unit promoter shares of Shree Investment and Finance re-auction. 

Shree Investment and Finance is re-auctioning 2.77 lakh unclaimed promoter shares to existing promoters as well as general public. The auction started from 28th Chaitra and is closing on today. 

The company had previously auctioned 66,377 unit ordinary shares and 2,77,996.53 units promoter shares. The cut-off for ordinary shares stood at Rs 186 whereas no application was received for promoter shares. Thus, the company is re-selling the stated number of promoter shares. Only existing promoters of the company were allowed to bid previously. 

Shree Investment and Finance had floated 28.67 lakh unit right shares at a ratio 100:83 from 15th Magh. The right issue closed on 20th Falgun, 2074, where approx. 3.44 lakh (12%) shares were unsubscribed. Those shares were auctioned among general public.

Siddhartha Capital is managing the auction.

Overall Performance of the Company

The company currently has a paid up capital of Rs 34.54 crores which will hike to Rs 63.21 crores after listing of right shares. As per the 2nd quater of 2074/75, the company had earned a net profit of Rs 3.48 crores that accounts to an EPS of Rs 20.16. The company had an accumulated reserve of hefty 34.28 crores. The book value per share stands at Rs 199.26. The company had a non-perfoming loan of merely 0.16% . Thus, looking at the overall indicators, the financial condition of the company looks sound. Above that, analysing the dividend history of the company,Shree Investment and Finance company has regularly distributed a decent dividend to the shareholders. 

Take away

Grabbing the shares of financially attractive company at a low rate can be a good opportunity of the investors. As the company has a good dividend paying history, the bidders can think of doing a long term investment in the shares of this company. However, investors wanting to buy liquid shares need to think twice before investing