The share price of Unilever Consumer Care Ltd, previously GlaxoSmithKline Bangladesh, has been soaring for the last five days without any price-sensitive information.
Following the "abnormal" price hike, the Dhaka Stock Exchange (DSE) sent a show-cause notice to the company on Sunday.
In response, the company informed the DSE that there was no undisclosed price sensitive information behind the recent unusual price hike of its shares.
Unilever's share price jumped by 34% to Tk3,023 in the last five days and turned into the second most valuable share at the DSE.
Now the top valuable company is Reckitt Benckiser and its share price stands at Tk3,782.
Seeking anonymity, market analysts said Unilever has a stronger marketing channel than GlaxoSmithKline and so its business is going well under the new management. That is why the demand for its shares is increasing among general investors.
Md Kabir Hossain, a general investor who trades at Sheltech Brokerage Ltd, said, "Unilever is a giant in the first moving consumer goods sector. Health food drinks and nutrition products business will achieve significant growth under Unilever."
General investors have only 3.59% shares in the company. So, the share price of the company increases easily within a short time, said a top official at a brokerage firm.
On 28 July this year, Unilever Overseas Holdings BV became the new owner of GlaxoSmithKline (GSK) Bangladesh Ltd by completing the acquisition of 82% of its shares.
GSK Bangladesh – a subsidiary of the British pharmaceutical giant GlaxoSmithKline Plc – was listed on the DSE in 1976.
Now GlaxoSmithKline or GSK has been renamed Unilever Consumer Care Ltd at the DSE.
Unilever Consumer has been continuing its business as a publicly listed independent entity with all the brands – Horlicks, Boost, and Glaxose-D – of GSK Bangladesh, according to a press release issued by Unilever Bangladesh.
On the potential of the health food drinks and nutrition products portfolio, Unilever said the nutrition and health drinks category remains under-penetrated in Bangladesh and Unilever Bangladesh is well-positioned to further develop the market given the extent of its reach and capabilities.
There is huge growth potential in bringing in the best of GSK's brands and equity with the strengths of Unilever Bangladesh Limited's Go-to-market capabilities, it added.
Unilever has appointed KSM Minhaj as managing director of its newly acquired company GlaxoSmithKline Bangladesh Limited.
Masud Khan, former chairman of GlaxoSmithKline, has been re-elected the chairman of the Unilever Consumer board.
Unilever is one of the world's leading consumer goods companies, making and selling around 400 brands in more than 190 countries.
Meanwhile, Unilever Consumer's revenue fell by 10% to Tk277.62 crore in the first nine months of this year. Horlicks contributes to around 93% of Unilever Consumer's annual sales.
In the last two years, the company paid a 530% cash dividend to its shareholders.