Primary share investors of Sana Kisan Bikas Bank’s
ordinary shares gained six times the original investment while Rural
Microfinance Development Center (RMDC)’s share price appreciated by
three times on the very first day at stock exchange.
The share price of Sana Kisan Bikas Bank that had opened at Rs 550 reached Rs 605 by the time of closing. Investors who had purchased the shares during the bank’s initial public offering (IPO) back in July at a face value of Rs 100 have earned 600 per cent extra on their investment.
Likewise, another débutante of the day — RMDC — also debuted at Rs 510 per unit today. By the end of the trading day, its share price had reached Rs 561 per unit.
RMDC had offered its shares at Rs 180 on its primary offering held in mid-July, with an added premium of Rs 80 on the face value of Rs 100. Investors gained more than 300 per cent on their original investment on the very first day.
Sana Kisan Bikas Bank was allowed to trade in the range of Rs 349 and Rs 1047, and RMDC within the range of Rs 319 and Rs 956, according to Nepse’s rule. The debut price of newly listed companies is fixed between paid up value or three times the net worth of the company.
“Even before the market closed there were buy offers at a bit higher price but there were no sellers,” informed broker number 35 Bharat Ranabhat.
Both the microfinance development banks had undertaken IPO before the end of the last fiscal year. Sana Kisan Bikas Bank’s IPO for Rs 60 million was oversubscribed by 30 times. Likewise, RMDC’s offering was oversubscribed by 11 times.
“I think in recent history, no company has debuted at such a high price. Even the share price of commercial banks had stayed below Rs 200 on the first day,” informed Ranabhat.
Sana Kisan Bikas Bank’s 2,783 unit shares were traded in 23 transactions, while RMDC’s 15,089 shares were traded in 102 transactions.
Among the 228 listed companies, less than 20 companies have a share price higher than Rs 500 — with only eight class ‘A’ commercial banks with shares priced at more than Rs 500, at present.
Of late, microfinance banks have become pretty popular among stock investors. They have provided dividends of about 25 per cent of the paid up capital on average, last fiscal year. This year also, they seem to be declaring lucrative dividends.
Meanwhile, shares of two other financial institutions — Hamro Bikas Bank and Jebil’s Finance — debuted at Rs 160 and Rs 117, respectively.
source: the himalayan times,8 oct 2013
LINK
The share price of Sana Kisan Bikas Bank that had opened at Rs 550 reached Rs 605 by the time of closing. Investors who had purchased the shares during the bank’s initial public offering (IPO) back in July at a face value of Rs 100 have earned 600 per cent extra on their investment.
Likewise, another débutante of the day — RMDC — also debuted at Rs 510 per unit today. By the end of the trading day, its share price had reached Rs 561 per unit.
RMDC had offered its shares at Rs 180 on its primary offering held in mid-July, with an added premium of Rs 80 on the face value of Rs 100. Investors gained more than 300 per cent on their original investment on the very first day.
Sana Kisan Bikas Bank was allowed to trade in the range of Rs 349 and Rs 1047, and RMDC within the range of Rs 319 and Rs 956, according to Nepse’s rule. The debut price of newly listed companies is fixed between paid up value or three times the net worth of the company.
“Even before the market closed there were buy offers at a bit higher price but there were no sellers,” informed broker number 35 Bharat Ranabhat.
Both the microfinance development banks had undertaken IPO before the end of the last fiscal year. Sana Kisan Bikas Bank’s IPO for Rs 60 million was oversubscribed by 30 times. Likewise, RMDC’s offering was oversubscribed by 11 times.
“I think in recent history, no company has debuted at such a high price. Even the share price of commercial banks had stayed below Rs 200 on the first day,” informed Ranabhat.
Sana Kisan Bikas Bank’s 2,783 unit shares were traded in 23 transactions, while RMDC’s 15,089 shares were traded in 102 transactions.
Among the 228 listed companies, less than 20 companies have a share price higher than Rs 500 — with only eight class ‘A’ commercial banks with shares priced at more than Rs 500, at present.
Of late, microfinance banks have become pretty popular among stock investors. They have provided dividends of about 25 per cent of the paid up capital on average, last fiscal year. This year also, they seem to be declaring lucrative dividends.
Meanwhile, shares of two other financial institutions — Hamro Bikas Bank and Jebil’s Finance — debuted at Rs 160 and Rs 117, respectively.
source: the himalayan times,8 oct 2013
LINK
Comments
Post a Comment