Api Power’s share hit negative circuit for two consecutive days; End of locking period brings 70.90 lakh unit shares in the secondary market

-Puskar Shrestha

If we see the current market situation, the shareholders of Api Power Company Limited has lost the most in the last two days. The scrip of Api Power has been the top loser for the last two days as it has been hitting the negative circuit continuously. The lowest price of the scrip was Rs 301 when its trading had started on Kartik 30, 2072. Before today, the all-time lowest price of Api Power was Rs 298 and today it surpassed it.

The Last Traded Price of Api Power was Rs 276 as on Chiatra 05, 2074. It has been two days since it has been topping the charts of the top losers. If we are to evaluate the price of the company’s shares, the price of the company was Rs 428 exactly a year before on Chaitra 06, 2073. The company’s share has had a massive fall in the last two days itself. The LTP of Api Power was Rs 340 as on Chaitra 01, 2074 which means that the scrip has lost Rs 64 in the last two days. If the past price is to be considered, the price of Api Power was Rs 720 as on Chaitra 04, 2074

The obvious reason for the decreasing price of the shares of any company is the bad performance of the company.  So is the case of the shares of Api power, as the company has not shown significant financial performance over the years. And apart from that, Chaitra 04, 2074 was the end of locking period for the shareholders of the project affected area as well as the promoters and employees. The locking period is a period of 3 years from the allotment of shares. Until the expiry of the period, the shares cannot be traded.

From Chaitra 04, 10 lakh unit shares of 1,904 shareholders of the project affected area has become tradable in the secondary market. Along with them, 1,064 promoters with 60 lakh unit shares and 35 employees with 90,000 unit shares have become eligible to trade their shares in the secondary market. before this, only 27,60,000 unit ordinary shares with the general public and 1,50,000 unit shares owned by the mutual funds were traded in the secondary market.

The net profit of the power company has been decreasing and the financials are also not considered to be strong. It has announced 8% bonus shares from the profit of FY 2073/74. Also, the 200% right shares of the company are in pipeline waiting for approval in SEBON since Asar 30, 2074. But the approval has been pending since then and the shareholders have been waiting. The company has not been able to make a positive impact on the shareholders due to which the shareholders did not show any patience in holding the shares of Api Power which led it to hit the negative circuit for two consecutive days.

Not just for the local residents, the locking period has expired for the promoters as well as the employees of the company. So, from Chaitra 4, 2074 70.90 lakh unit shares have become tradable in the secondary market. The available volume of tradable shares of an average performing company has surged by a huge margin which might be the main reason for such slide in the price of the shares. the coming few days will be a must watch for the shareholders of the shares of the power company as well as for the investors interested in investment in the shares of the company.