Desh General Insurance stocks soar 77% in 14 days
The company says there was no undisclosed information behind the unusual price hike
KEY FINANCIALS
- Raised Tk16 crore from the stock market through IPO
- Posted a profit of Tk1.99 crore in first 9 months of 2020
- EPS in Jan-Sep 2020 period was Tk0.83
- Net profit was Tk84 lakh in Jul-Sep 2020 quarter
- EPS was Tk0.35 during the period
The share price of the newly listed Desh General Insurance has soared by 77% to Tk39.9, from Tk22.5, in the last fourteen days.
Market records show that the share price rose by 5.56% on Tuesday, and 9.79% on the previous day.
Keep updated, follow The Business Standard's Google news channel
The Dhaka Stock Exchange (DSE), in a letter on 18 April and again on 19 April, asked the company to explain the reason for its unusual share price hike.
In response, the company said there was no undisclosed price sensitive information driving the price hike.
Desh General Insurance got listed on the capital market this year and made its debut on both stock exchanges of the country on 29 March.
The company has raised Tk16 crore in capital from the stock market, issuing shares at Tk10 each with an initial public offering (IPO) for business expansion.
It will invest the IPO funds in the capital market, fixed deposit receipts (FDRs), and treasury bonds.
Former industries minister Amir Hossain Amu, and Bengal Group of Industries Chairman, M Morshed Alam, are the founders and major shareholders of the company.
Following the stock market debut, the share price of the company soared by 50% in the first trading session.
The share price rose by 50% again on the second day, and after that, the company has come under the circuit breaker from 1 April.
According to its financial statement, in the first nine months of 2020, Desh Insurance posted a profit of Tk1.99 crore and earnings per share (EPS) stood at Tk0.83, which was Tk1.98 crore and Tk0.82 respectively in the same time frame the year before.
In the July-September quarter, its net profit stood at Tk84 lakh and EPS Tk0.35, which was Tk65 lakh and Tk0.27 respectively, in the same time frame the year before.
