Investors suffering huge loss in Hydropower scrips; more panic to HIDCL, KKHC & SPDL’s investors (Price trend study of newly listed hydropower companies) 

Hydropower is considered to be probable sector to generate more revenue in Nepal as Nepal is the second largest country in water resources; with capability to generate electricity more than 83,000 MW. Of late, many hydropower projects got constructed and many others are in under construction phase. Price of those companies which had issued Initial Public Offering (IPO) seems to be unsatisfactory in context of their price trend in Nepal stock exchange (NEPSE). Charm among investors has been declining day by day if we deeply observe price trend in this sector. If this trend continues, then not many investors will further be saturating their hard earn money in hydropower companies. We have analyzed by how much percentage price of hydropower have changed. Below table shows the data of 8 hydropower scrips and of Hydropower Investment & Development Company Limited (HIDCL) from Other sector. We simply try to clarify our investors with change in last trading price with respect to listed and highest price. CaptureFrom the above table, it is clear that HIDCL being the hydropower investment company, whose price tremendously fall by 63.47% with respect to highest price, followed by Khanikhola Hydropower Company Limited (KKHC) and Synergy Power Development Limited (SPDL) by around 50% descend. Likewise, Dibyashwori Hydropower Limited (DHPL) slides by 49.71% with respect to listed price which is again followed by HIDCL with decline of 44.21%. Only Arun Kabeli Power Limited (AKPL) and newly traded Himalayan Power Partner Limited (HPPL) is in green zone with 21.89% and 10% rise withstand listed price. This kind of huge volatility in prices of hydropower is not good for this sector. Fall in price around 50% or more in short period of time signifies the dissatisfaction with the earning and returns provided by the hydropower company to its shareholders. Also, lack of regulation is responsible for this fall in this sector. Thus, hydropower companies must be responsible towards the investment of public and should focus to provide sustainable return in upcoming days if they really want further support from public to continue another mega projects.
  • Sijan Bajracharya
  • Deep Thapa