Sandhani Life Insurance shares soar over 23%
This comes shortly after its former CEO Ahsanul Islam became a state minister
Sandhani Life Insurance shares soared over 23% from 11 January to 15 January at the Dhaka Stock Exchange (DSE), apparently fueled by the appointment of its former CEO, Ahsanul Islam (Titu), as a state minister in the government.
Previously, from 3 October 2023 to 10 January 2024, the company's share price remained stuck at the floor price of Tk26.9.
However, following Ahsanul's appointment, it closed at Tk33.3 on Monday, marking a gain of Tk6.4 in just three trading days.
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Ahsanul Islam served as the company's CEO for years before resigning in 2018 and becoming an adviser to the company. He still holds a significant stake of 36.56 lakh shares.
Additionally, market insiders said Sandhani Life Insurance's board is being dominated by Ahsanul Islam's family members.
Investors are optimistic that Ahsanul's new position as a state minister will translate into positive outcomes for Sandhani Life Insurance. His close ties to the government could potentially open doors to new business opportunities.
On 11 January, Ahsanul Islam took oath as a cabinet member. He was elected as a member of the parliament from Tangail in the 12th national election.
Sandhani Life Insurance was listed on the stock exchanges in 1996. Its sponsors and directors hold 29.45% shares in the company, where institutional investors have 12.82% and general investors have 57.73% shares.
It had paid a 12% cash dividend to its shareholders for the year 2022. It has paid the same dividend since 2019.
At the end of September last year, its life fund stood at Tk672 crore, which was 7% lower than the previous year.
