Sonapur Cement IPO Debut: Facing a Negative Circuit in Secondary Market Trading

Kathmandu – The shares of Sonapur Minerals and Oil Cement, recently listed on NEPSE, experienced a negative circuit on their inaugural trading day. Despite the company initially offering its shares at a face value of NPR 100 each, along with a premium of NPR 137.58.

On October 2, when the company’s shares were first listed on NEPSE, they exhibited an opening range of NPR 142.01 to NPR 426.03 for trading in the secondary market.

During the special pre-opening session on Sunday, the company’s share price started at NPR 350 but subsequently decreased by 10 percent to NPR 315.

While 3,500 shares of the company were traded, orders for over 424,000 shares were placed for sale. Consequently, more than 364,000 shares were sold at the negative circuit price of NPR 315.

The decrease in Sonapur Cement’s share price, following the IPO, below the public issue price of Ghorahi Cement, may have instilled a lack of confidence among investors. This could be a contributing factor to the shares experiencing a negative circuit on the very first day of trading in the secondary market.

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