On October 6, the share price of Pragati Life Insurance surged by 33%, reaching Tk263.5 per share, up from Tk197.5 just seven trading days earlier on September 24. The sharp price hike raised concerns, prompting the Dhaka Stock Exchange (DSE) to issue a query to the company on October 7.
DSE Query and Company Response
In response to the DSE’s inquiry, Pragati Life Insurance clarified that there was no undisclosed price-sensitive information that could explain the sudden increase in share price and trading volume. The company stated that the price rise was not attributed to any material event or announcement that had not been previously disclosed.
Price Adjustment After the Query
Following the query from the DSE, Pragati Life Insurance’s share price experienced a slight dip of 0.65%, falling by Tk1.7 to Tk261.8 per share on October 10. On that day, a total of 6.85 lakh shares worth Tk18.5 crore were traded.
Company’s Dividend and Shareholding Structure
In 2024, Pragati Life Insurance paid a 15% cash dividend to its shareholders. As of September 2024, the company had 3.25 crore shares in total, with the following shareholding breakdown:
Sponsor-directors: 40.62%
Institutional investors: 22.73%
General investors: 36.65%
Conclusion
The 33% surge in the share price of Pragati Life Insurance raised eyebrows, especially with the lack of a clear explanation for the increase. The DSE’s inquiry into the matter underscores the importance of transparency in the market. While the stock price corrected slightly after the query, further monitoring will be required to understand the long-term impacts of this sudden surge on the company and its stakeholders.
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