Sanima Mai Hydro seeing massive shares in transaction; completion of 3 years locking period, right renounce and listing of right shares increasing supplies (with floor sheet analysis)
Fri, Jan 19, 2018 1:10 PM on Latest, Exclusive, Featured, Stock Market,
Sanima Mai Hydropower Limited (SHPC) has been witnessing massive transactions of its scrips in the last few days. SHPC has ended up becoming a company with almost regular transactions of lakhs of units of share from a company with minimal transaction till the mid of Poush.
For an instance, more than 2.9 lakh shares of SHPC were traded on Magh 3 while the transaction volume had stood to more than 1.25 lakh unit shares the previous day.
There could have been many speculations among the investors regarding the actual reason behind this dramatic surge in transactions of Sanima Mai Hydropower Company. This swell in supply of shares however is quite natural for the hydropower company which had issued bulk of its shares to project affected locals, employees, promoters and had recently hiked its paid up capital through issuance of the right shares.
As bounded by the regulatory guidelines, the shares of project affected locals as well as those belonging to employees and promotershad been barred from trading for 3 years from the date of their IPO issuance. Now, once this share locking period of 3 years got over, it’s quite natural that these locked shares would come into the market there by creating a big supply pool.
Next, it is also the contribution from the right issuance that the hydropower company had undertaken some time back to jack up its capital. Once these right shares were listed in NEPSE, their owners started trading their scrips adding another heap of shares to the already existing supply.
There is also a rumor that major players have got cheap shares by renouncing rights from different people. Now they are selling those shares at market.
Consequently, the impact of supply has also been seen in the price of SHPC scrips in the secondary market. Shares of SHPC which had traded as high as Rs 505 on Poush 17 came down to trade at the highest point of Rs 427 on Magh 3, 2074 which is a decline of approximately 15% in mere 2 weeks time.
Floor Sheet Analysis:
January 16: Total 1,25,417 units traded with Broker No. 4 and 47 selling the most shares.
January 17: Total 2,90,789 units traded with Broker No. 4 and 13 selling the most shares.
Here, we can clearly see that limited broker or investors are selling huge units of SHPC share dragging the market price and buyer are scattered. So we can assume until and unless massive selling gets over price of SHPC will be on weaker side.
There could have been many speculations among the investors regarding the actual reason behind this dramatic surge in transactions of Sanima Mai Hydropower Company. This swell in supply of shares however is quite natural for the hydropower company which had issued bulk of its shares to project affected locals, employees, promoters and had recently hiked its paid up capital through issuance of the right shares.
As bounded by the regulatory guidelines, the shares of project affected locals as well as those belonging to employees and promotershad been barred from trading for 3 years from the date of their IPO issuance. Now, once this share locking period of 3 years got over, it’s quite natural that these locked shares would come into the market there by creating a big supply pool.
Next, it is also the contribution from the right issuance that the hydropower company had undertaken some time back to jack up its capital. Once these right shares were listed in NEPSE, their owners started trading their scrips adding another heap of shares to the already existing supply.
There is also a rumor that major players have got cheap shares by renouncing rights from different people. Now they are selling those shares at market.
Consequently, the impact of supply has also been seen in the price of SHPC scrips in the secondary market. Shares of SHPC which had traded as high as Rs 505 on Poush 17 came down to trade at the highest point of Rs 427 on Magh 3, 2074 which is a decline of approximately 15% in mere 2 weeks time.
Floor Sheet Analysis:
January 16: Total 1,25,417 units traded with Broker No. 4 and 47 selling the most shares.
January 17: Total 2,90,789 units traded with Broker No. 4 and 13 selling the most shares.
Here, we can clearly see that limited broker or investors are selling huge units of SHPC share dragging the market price and buyer are scattered. So we can assume until and unless massive selling gets over price of SHPC will be on weaker side.
