Hathway Investment Nepal (HATHY): A Phenomenal 1880% Gain for IPO Allottees in Just 47 Trading Days

Hathway Investment Nepal Limited (HATHY) has surpassed expectations since its Initial Public Offering (IPO), making it a standout performer in the market. Established in 2009, Hathway is recognized as Nepal’s pioneering private-equity investment firm, dedicated to impactful investing. The company initiated its public market journey with an IPO priced at Rs. 50 per share, which received significant public attention, issuing a total of 24,27,750 unit shares. Listed on October 10, 2023, with an opening range set by the Nepal Stock Exchange (NEPSE) at Rs. 95.09 to Rs. 285.27, HATHY’s stock opened impressively at Rs. 285.20 on October 11.

Hathway has exceeded market expectations, and as of January 4, 2024, the stock’s current market price stands at an impressive Rs. 990, including a 10% bonus share adjustment. This marks a substantial increase from the IPO price of Rs. 50 per share. The company has experienced a remarkable gain of Rs. 704.80 or 247.12% from the opening price of Rs. 285.20 in the last forty-seven trading days. Investors allotted shares during the IPO have witnessed a phenomenal gain of 1880% during this period, with a total turnover of Rs. 2.86 Arba and 95,777 transactions.

In its first quarterly report, Hathway reported a net profit of around Rs. 1.58 Crores, with an Annualized Earnings Per Share (EPS) of Rs. 2.70 and a Net Worth Per Share of Rs. 80.24. The company’s investments in securities and properties total Rs. 2.06 Arba and Rs. 18.51 Crores, respectively.

HATHY has proposed a dividend of 10.526%, comprising 10% bonus shares and 0.526% cash dividends, based on the company’s paid-up capital of Rs. 1.17 Arba for the fiscal year 2079/80. The book closure for this dividend closed on December 28, 2023.

The closing price of Hathway on December 27 was Rs. 796.50, and after factoring in the adjustment for the 10% bonus shares, the revised price stood at Rs. 724.09. Post-adjustment, with a total of 25,740,000 units of shares, Hathway’s market capitalization presently stands at an impressive Rs. 25.48 Arba.