Sena Kalyan Insurance shares skyrocket

The share price of Sena Kalyan Insurance – a newly-listed insurance company on the stock market – jumped eight times just in a month.

The share price rose 692% in the 22 sessions of trading since its debut on the country's stock exchanges. 

On Monday, its share price closed at Tk79.20 each – at 10% higher than that of the previous trading session.

The company has issued 1.6 crore ordinary shares at a face value of Tk10 each.

The share trading began at stock exchanges on 7 November, and since then the price kept on increasing consistently.

Owing to this unusual share price hike, the Dhaka Stock Exchange (DSE) sent a query to the company on 5 December.

In response, Sena Kalyan Insurance on Monday said, "There is no undisclosed price sensitive information for recent unusual price hike and increase in the volume of shares."

According to the DSE, the total shares of the company are four crores.

Sponsors and directors hold 60%, institutional investors 16%, foreign investors 4%, and general public 20% shares in the company.

In August this year, the Bangladesh Securities and Exchange Commission (BSEC) approved the initial public offering (IPO) to raise Tk16 crore from the stock market to strengthen its business.

Sena Kalyan Insurance is a fourth-generation life-insurance company that was established in 2013.

It is engaged in fire, marine, engineering, motor, aviation, and miscellaneous accident insurances.

In the January-September period of 2021, it made a profit of Tk8.28 crore, while its earnings per share stood at Tk3.45.