Rabindra Dhungel, 20 august 2020. Recently, the hydropower company has stopped being the choice of investors. Due to the lack of regulatory body and good financial governance within the hydropower company, this sector has gradually ceased to be the choice of investors.
Investors say that this sector has been left out of the choice of investors as the intention is to work for financial gain within the operator and management rather than return on investment. As a result, the share price of the hydropower company in the secondary market is now lower than the price of ordinary shares (IPO).
A total of 33 hydropower companies are listed on the Nepal Stock Exchange (NEPSE). Of which, the share price of 17 companies is less than 100. The share price of almost all other companies is just above Rs 100.
The share value of Chilime Hydropower Company is the highest. On Thursday, the per capita price of Chilime was Rs 400. That too is gradually declining. The share price of the remaining 17 hydropower companies is between Rs 100 and Rs 300 per share. This means that hydropower investment will be hit hard today.
As the value of their shares falls below the primary share price, investors tend to sell more than buy shares of Hydropower in the secondary market. The share price of Hydropower is still uncertain. Nowadays, investors in hydropower are trying to figure out how to escape from this hydropower group by incurring huge losses rather than incurring huge losses.
Therefore, investors are selling shares of the hydropower company at a lower price in the secondary market and boycotting IPOs and rights shares issued in the primary market. According to the IPO, Mountain Energy Company and Liberty Energy Company have been evicted.
Mountain Energy’s IPO has been repeatedly postponed due to lack of investors, while Liberty Energy’s IPO has not attracted investors. The board of directors is in doubt that a new hydropower company will be formed tomorrow after the investors stop believing in the shares of hydropower.