Bungal Hydro Limited has completed the allotment of its IPO. According to the issue manager, Himalayan Capital Limited, 170,150 applicants received shares, with each getting 10 shares, making a total of 1,701,500 shares.
Investors who got the IPO are now curious about the opening price of the shares. The company expects the first trading price to be between Rs 100.88 and Rs 302.64 per share. NEPSE sets the opening range based on the net worth per share of the company for its first trade.
For Bungal Hydro, the net worth per share in fiscal year 2080/81 was Rs 100.88. The company expects it to decrease slightly to Rs 93.49 in fiscal year 2081/82. NEPSE can set the opening range up to three times the net worth per share, depending on market conditions.
However, the company’s earnings per share (EPS) is Rs -41.69. EPS is calculated by dividing the post-tax profit by the total number of shares. It shows the company’s ability to make profit, and a negative EPS indicates the company is currently not profitable.
Investors will watch the first trading day closely to see how the market reacts to the IPO despite the company’s negative earnings.
