SONA Turns Out To Be Costly For Investors; Trading At Consecutive 3rd Day Negative Circuit

Sonapur Minerals and Oil Limited (SONA) which made its market debut initially saw its IPO priced at Rs. 237.58 per share. Unfortunately, since entering the secondary market, the company has faced consistent challenges. The stock witnessed a troublesome trend, hitting a negative circuit for three consecutive days, leading to a downward spiral in its trading value.

Currently, SONA is teetering close to its IPO price of Rs. 237.58 per share, trading at Rs. 255.20 per unit. This reflects a significant decline of approximately 9.98% from last closing price. Market experts speculate the possibility of continued supply pressure, potentially driving the stock into another circuit below its issued price.

The company has a total of 30,750,500 unit shares listed in NEPSE. Out of which 12,165,680 units were issued to the general public at a premium price of Rs. 237.58 ( Rs 100 + Rs 137.58 ) while 1,34,520 unit shares were allotted to the project-affected locals at Rs. 225 per share (Rs 100 + Rs 125).

From its opening range of Rs. 142.01 to Rs. 426.03, the stock commenced at Rs. 350 on Sunday. The scrip hit a 10% negative circuit each on the day of commencement and Monday, witnessing a fall of around 27.08% from its opening price. 

On the other hand, Ghorahi Cement Industry Limited (GCIL) faced a similar fate in the secondary market. The company's IPO was launched at a premium price of Rs. 435 per unit. However, in the subsequent trading days, GCIL's shares have been trading below the issued price.

As of the latest update, GCIL's shares are trading at Rs. 390, marking a notable decline of approximately 13.33% from its IPO price. The company has faced challenges in maintaining its value in the secondary market, raising concerns among investors and market observers about its performance and future prospects.

The struggles of both SONA and GCIL in the secondary market highlight the challenges faced by newly listed companies. Investors and stakeholders continue to assess the factors contributing to this decline and the potential strategies these companies might employ to recover their market standing.