What is the Opening Price Range of Vision Lumbini Urja Company ?
The opening price range of Vision Lumbini Urja Company is from Rs. 121.78 to Rs. 365.34. Nepal Stock Exchange (NEPSE) will determine this price range based on the audited financial report of the fiscal year 2078/79. The net worth per share of the company is Rs. 121.78 in the financial report. The financial ratio of the company has been published in the official website, you can check it below too.
According to the report, the Earnings Per Share (EPS) of the company is Rs. 26.55 and Reserve stands at Rs. 33,04,14,650.
About Vision Lumbini Urja Company IPO
Vision Lumbini Urja Company Limited had issued 20,75,285 unit IPO shares to the general public from 16th to 20th Kartik, 2080. The par value of each share is Rs 100. Before issuing for general public, the company issued 19,12,500 unit shares to the project-affected locals (Kaski District). Out of total unit only 14,24,590 units were allotted to valid applicants. The remaining 4,87,910 units of unsubscribed shares were added to 19,12,500 units to make a total of 24,00,410 units for the general public.
Out of total remaining units,191,250 units have been issued to Nepalese citizens working abroad, 95,625 units are allotted for mutual funds & 38,250 units have been set aside for the employees of the company. The remaining total shares which is 20,75,285 units are allotted to the general public investors.
In the public issue, total 11,55,927 valid applicants applied for a total of 1,23,97,480 units. Hence, the issue was oversubscribed by more than 5.97 times. Among the only 2,07,528 applicants were allotted 10 units each and lucky 5 applicants got 1 unit making 11 units each. The remaining 9,48,399 applicants got no share.
In total 4,602 applicants were disqualified due to various reasons. To void these rejection while applying for an IPO you can read 7 Mistakes To Avoid While Applying For IPO in Nepal.
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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