IPO Review: Profit/Loss from investment in IPO of 13 companies
May 2, 2019 | Investopaper
IPO issue has always received a good response from share investors. With the introduction of Mero share and C-ASBA facilities, the investors need not spend their whole day to apply for the IPO of the company. Also, SEBON has lately facilitated investors to apply for a minimum of 10 units of shares at Rs. 1000. This will definitely catalyze more investors to apply for the IPO issue in the coming days.
Related: How to apply IPO/FPO/Right Share through Mero Share?
So, is it worth to spend your hard earned money in the IPO of the company? The table below shows the list of 13 company which issued IPO shares to the general public in the last one year period. See how much you would have gained if you were the lucky one to receive at least 10 units of shares of these companies through the allotment process.
As shown above, of the latest IPO issues in the hydro sector, three hydropower companies share price has fallen below IPO price. Similarly, other hydropower companies like Ghalemdi and Panchakanya share price is also nearer to the IPO price. Only Tamakoshi share price is above 200 and the gain percent stands at 144 percent. The hydro sector was also the major losing sector last year when the market observed a severe crash.
In case of microfinance, if you were allotted 10 units of Nadep Laghubitta, now you would have 23 units of shares after the company issued 100 percent right and distributed 30 percent bonus to its shareholders from the profit of fiscal year 2074/75 post IPO issue. Your investment of Rs.2000 would have fared you 12000 plus amount which is a 500 percent gain. All other microfinance like Aarambha, Asha, Chautari, and Samudayik have observed a significant rise in the share price. Due to this significant gain, the charm for microfinance IPO has been seen among Nepalese share investors.
Likewise, Shivam Cements from the manufacturing and product sector which made an FPO issue at Rs. 300 to the general public is trading at Rs. 328 and it has provided 15 percent cash dividend to its shareholders from last year profit. The gain is 14.33 percent for the investors.
IPO issue will always lure the investors but it will be wise to consider the fundamentals before subscribing the IPO of the company.
