Should you (as a retail investor) hold HRL share?

POV: A CA Aspirant ( 3rd year).

Himalayan Reinsurance Limited is a newly listed IPO whose capital is as below:

1. Promoter : 70,000,000
2. Public : 30,000,000

Only the public shares are tradeable atm in the stock exchange. The maximum shares a retailer was allotted was 180 (foreign) and minimum was 10 (general). All the tradeable shares are in the hands of the retail traders.

Let’s look at the volume trades so far.

1. 8 Jan 2024 1st day – 30,866
2. 9 Jan 2024 2nd day- 10,699
3. 10 Jan 2024 3rd day – 17,000
4. 11 Jan 2024 4th day – 37,455

These volumes are small compared to the listed size.

These all factors indicate that the retailers have the sentiment of ” Hold is gold”. It’s direct competitor is Nepal Reinsurance Company whose LTP is 661.40.

Further second quarter of FY 2080-81 is about to end and there is a strong probability of lower interest rate from commercial banks that discourages people to save money (even in FDs.). Monetary review might also give favorable environment for stock market as the Government is in need of money and capital gain tax is a great source of revenue.

Hydropower sector has also signaled the possibility of break through and bull run.

“Game Stop” stock market is a great example that retail traders can win over institutional investors.

So I suggest retailers to hold the shares of HRL.


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