Opening Price Range of Himalayan Reinsurance

Opening price range of himalayan reinsurance 1

Opening Price Range of Himalayan Reinsurance

The opening price range of Himalayan Reinsurance is Rs. 103.07 to Rs. 309.21. The NEPSE will determine the opening price range based on the net worth per share of the company. The net worth per share of the company is Rs. 103.07. You can check the audited financial report of the company for fiscal year 078/79. The net worth per share and earnings per share of the company for projected year is in uptrend.

Financial Ratio of Himalayan Reinsurance Limited (HREL)

Financial Ratio of Himalayan Re-insurance

About IPO Issue

Himalayan Re-insurance Limited – HREL has issued 2,49,00,000 IPO shares to general public from Mangsir 27 to Poush 1 priced at Rs. 206 per share (Rs. 100 face value + Rs. 106 premium price). As per the CDSC report, until the 4th day (i.e. Poush 1) (17:08:45 PM) , total of 1460117 has applied for 28061360 units of shares worth of Rs. 5,78,06,40,160.  Although the issue has been oversubscribed by the in the pre-determined time, the issue manager NMB Capital has decided to extend issue date until 11th of Poush.

Of the total 3,00,00,000 units, 10% (30,00,000 units) has already been allocated to Nepalese citizens working abroad, 2% (6,00,000 units) reserved for company employees, and 5% (15,00,000 units) set aside for mutual funds. The remaining 2,49,00,000 units was issued to the general public.

Credit Rating of Himalayan Reinsurance

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] A- (pronounced ICRA NP Issuer Rating A Minus) to Himalayan Reinsurance Limited, indicating an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.

Credit Rating of Himalayan Re-insurance

How is the opening price range of the stock determined?

Nepal stock exchange (NEPSE) determines a new company’s opening price range based on the company’s book value (net worth per share). The net worth is taken from the company’s audited financial report issued during the IPO issuance. Every company has to publish it’s audited financial report and projected report of the company before applying for IPO issue to public. For example, if the book value of the company’s latest audited report is 100 then the opening price range will be 100 – 300. The minimum price should be the same as the book.

What is a special pre-open session?

A special pre-open session is a trading time for newly listed stock. When a new company gets listed in NEPSE for the first time, its share is traded in the special pre-open session for the first time. After trading in the pre-open session, its share starts to change in the continuous session which is 11 AM – 3 PM.

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