Century to debut around Rs 250; Ridi to be traded at circuit level

ShareSansar, June 6:

The primary shares of Century Commercial Bank Limited are going to be traded from Sunday and that of Ridi Hydropower Company Limited by next Sunday.

While Century signed the listing agreement with Nepal Stock Exchange on May 30, Ridi is planning to follow the suit on Sunday, according to the company officials.

On the basis of their financial reports for the third quarter, we also know the price bands for both the IPO shares. The price brand of Century’s scrip is Rs 110.7 to Rs 330.21. Similarly, Ridi will debut in between Rs 101.87 to Rs 305.1.

Now the million-dollar question is: What should be the actual trading range of both Century and Ridi?

ShareSansar talked to a number of established investors to find out the likely price of both the scrip.

According to Durga Upreti, Century’s trading range might be around Rs 250-300 per share on the first day and eventually it might settle over Rs 300, whereas Ridi’s might be around Rs 400 to Rs 600 per share as the company’s scrips are scattered in small quantities among the investors, and that the cost of fund is high. It might eventually settle over Rs 600.

“Century’s scrip is being traded around Rs 270 in OTC and Ridi is being traded between Rs 400 and Rs 450,” he says.

Ambika Prasad Poudel, another prominent investor, feels that for Century the trading range might be 250 to 260 on the debutant day and that the price might not rise above 260 for quite some time.  

He estimates that Century’s scrip is being traded in between Rs 200 and Rs 230 in the longer run, and that the scrip is being traded in OTC around Rs 250 to 260.

He has not followed Ridi scrip, however.

Another major investor, Tulsi Ram Dhakal, says that the trading range for Century might be around Rs 225 to Rs 250 on the first day, and eventually it is likely to settle in between Rs 250 and Rs 275.

Insofar as Ridi’s scrip is concerned, as the demand is high and the share is limited, it is likely to be traded around Rs 400 on the debutant day next Sunday. As the demand for shares of hydropower is rising, the trading might eventually settle in between Rs 550 and Rs 600, he says.

“Talking about the OTC, it depends on the market. In my opinion Century’s OTC range might be around Rs 300 per share and Ridi’s might be anything between Rs 650 to 700 as I mentioned earlier the demand is high and the supply is limited,” he adds.

Another noted investor Bimal Pandey is of the view that the first trading might be above Rs 250 for Century and eventually the scrip will settle around the same price range.

“For Ridi, the trading might be around Rs 650 on the first day, and ultimately the trading will take place over Rs 650,” he adds.

In OTC, Century scrip is being traded between Rs 230 and Rs 250 so it might eventually settle at Rs 250 or even as much as Rs 300, according to  Pandey. Similarly for Ridi, it is being traded at around Rs 600 in OTC, and is likely to settle above Rs 700 in the long run.  

Uddhav Siwakoti, who is also a stock analyst, holds that for Century the trading might take place in between Rs 250 and Rs 300 on the first day.