NIFRA Hits Trading Floor at Upper Limit; Hits 10% Positive Circuit Immediately

The IPO shares of Nepal Infrastructure Bank Limited (NIFRA) have made their debut on the NEPSE trading floor today. The opening range was set from Rs. 113.62 to Rs. 340.86 for the first transaction.

The shares opened at their upper limit of Rs. 340 under the sector Development Banks. Within a matter of minutes, trading of a handful of shares took the stock 10% higher. Thus, NIFRA has hit a 10% positive circuit for the day. NEPSE's online trading system, TMS, shows a huge amount of piling buy orders while there are virtually no sellers. This means that while optimistic investors are offering to buy the shares, investors who were allotted the shares in the IPO are refusing to sell.

Nepal Infrastructure Bank Limited had issued 8,00,00,000 units worth Rs 8 Arba as Initial Public Offering to the general public from Magh 2-6, 2077. Out of the offered 8,00,00,000 units; 0.20% of the total offered shares to the general public i.e. 1,60,000 units were set aside for the employees of the company and 5% for mutual funds. The remaining 7,58,40,000 units were for the general public. The issue had received applications from 14,75,008 valid applicants who had applied for a total of 16,72,10,000 units. The issue was oversubscribed more than 2.21 times.