Hathway Investment Nepal: A Thrilling 1880% Surge for IPO Allottees in Just 47 Trading Days
In the realm of investment
opportunities, few stories capture the imagination like Hathway Investment
Nepal Limited (HATHY). Established in 2009, Hathway has not only emerged as a
trailblazer in Nepal's private-equity landscape but has recently sent
shockwaves through the market with its astounding performance post-IPO. Let's
unravel the intriguing narrative that has unfolded in just 47 trading days.
Setting the Stage: IPO Buzz and Beyond
Hathway embarked on its public market
journey with an Initial Public Offering (IPO) that stirred significant
interest. Priced conservatively at Rs. 50 per share, the IPO witnessed an
overwhelming response, issuing a total of 24,27,750 unit shares. Listed with
2,34,00,000 shares on October 10, 2023, HATHY's opening range, as set by the
Nepal Stock Exchange (NEPSE), was Rs. 95.09 to Rs. 285.27. The stock
spectacularly opened at Rs. 285.20 on October 11, laying the foundation for an
extraordinary journey.
The Meteoric Rise
Hathway Investment Nepal Limited
didn't just meet market expectations; it surpassed them, showcasing an
outstanding market performance. As of January 4, 2024, the current market price
stands at an impressive Rs. 990 with a 10% bonus share adjustment. This marks a
colossal increase from the IPO price of Rs. 50 per share. In just forty-seven
trading days, the stock has soared by Rs. 704.80 or 247.12%. Astoundingly,
investors allotted shares during the IPO have witnessed an eye-watering gain of
1880%, a testament to the company's meteoric rise. The total turnover during
this period stands at an impressive Rs. 2.86 Arba, with 95,777 transactions.
Financial Fortitude
Hathway Investment Nepal has reported
a net income of around Rs. 1.58 Crores, showcasing the financial prowess of the
company. The Annualized Earnings Per Share (EPS) stood at Rs. 2.70, while the
Net Worth Per Share stood at Rs. 80.24. With investments in securities and
properties totaling Rs. 2.06 Arba and Rs. 18.51 Crores respectively, Hathway
demonstrates a diversified and robust investment portfolio.
Adding another feather to its cap,
HATHY recently proposed a dividend of 10.526%, comprising 10% bonus shares and
0.526% cash dividends. This move, leveraging the company's paid-up capital of
Rs. 1.17 Arba for the fiscal year 2079/80, demonstrates Hathway's commitment to
rewarding its investors. The window for book closure for this dividend closed
on December 28, 2023, leaving investors eagerly anticipating the additional
benefits.
Market Capitalization Soars
As of the day before the book closure
date, Hathway's closing price on December 27 was Rs. 796.50. However, factoring
in the adjustment for the 10% bonus shares, the revised price stood at Rs.
724.09, reflecting the positive impact of the bonus issuance. With a total of
25,740,000 units of shares post the adjustment, Hathway's market capitalization
presently stands at an impressive Rs. 25.48 Arba, underlining the company's
growing stature in the market.
While specifics of Hathway's
investments during the fiscal year 2079-80 are not detailed, the dynamic nature
of its investment portfolio is apparent. The evolving status of certain
entities within the portfolio, from unlisted to listed, highlights Hathway's
adaptability and strategic acumen.
Hathway Investment Nepal Limited's
spectacular 1880% gain for IPO allottees in just 47 trading days is a testament
to the company's strategic vision, financial strength, and market acumen. As
the journey continues, Hathway stands as a beacon in Nepal's investment
landscape, inviting both seasoned and new investors to explore the exciting
possibilities it presents. The story of Hathway is not just a financial
success; it's a narrative of growth, resilience, and a promising future.
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