Reasons for the price hike
Since the issue was only 12% of the company's capital size, the number of shares is not that huge. In addition to that, the shares subscribed by the project affected locals aren't tradable as of yet due to the lock-in period. Therefore, the number of floated shares is only 10% of the capital which implies low supply of shares.
The shares of SHIVM was listed in NEPSE on March 19, 2019
So, due to low supply and high demand of SHIVM shares in NEPSE could be the first reason for positive circuit hit by Shivam Cement's shares.
Similarly, the second reason is the company's performance as per the third quarter report of FY 2075/76. As per the report, the net profit has increased by 13.06% percent in the third quarter of the current FY 2075/76 to Rs 1.05 arba in the third quarter of fiscal year 2075/76 from Rs 93.66 crore in the corresponding quarter of the previous fiscal year 2074/75.
Similarly, it has made regular income from operation of Rs 8.37 arba by the end of the third quarter rising from Rs 7.10 arba in the corresponding quarter. The revenue from operation rises by 17.82% in Q3. Similarly, the cost of sales rises by 17.13% to Rs 5.37 arba.
Its retained earnings amounts to Rs 3.45 arba till the third quarter and has Rs 94.02 crore as share premium. Its current paid up capital stands at Rs 4.4 arba. Its annualized EPS stands at Rs 32.09 and net worth per share is at Rs 199.88 and its quarter end PE stands at 9.53 times and the current PE is almost 17 times.
These indicate a more than fair Earning per share with least possible PE ratio. This is a very lucrative investment opportunity, and as evident from the market situation, the buyers are trying to collect shares form the market.
The final reason maybe because the existing shareholders are trying to corner more shares. During the IPO issuance, the issue wasn't oversubscribed by much, so the allotted individuals got as high as 5,640 units. Thus, now as they are seeing that the company is doing well they may be trying to corner more shares.