Grameenphone market cap surges Tk3,551cr in two months
Grameenphone – the country's leading telecom operator – has witnessed a remarkable surge in its market capitalisation, which increased by Tk3,551 crore between 15 December and 16 February.
According to data released by the Dhaka Stock Exchange (DSE), the company's shares rose by over 8% during this period, reaching Tk340.60 per share – its highest level since October last year.
This upward trend reflects growing confidence among investors in the telecom giant's financial stability and future prospects.
Grameenphone remains the largest company by market capitalisation on the DSE, contributing around 13% to the bourse's total market capitalisation.
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Analysts said the company's strong market position, consistent dividend payouts, and strategic investments in network expansion and digital services have contributed to the positive sentiment.
Grameenphone's focus on innovation and customer-centric solutions has also played a key role in attracting both institutional and retail investors, they added.
As the telecom landscape continues to evolve, Grameenphone's performance is being closely watched by market participants, who remain optimistic about its potential for further growth in the coming months, said analysts.
According to Grameenphone's shareholding report as of December, Norway's Telenor Mobile Communications owns 55.80% of the company's shares, while Grameen Telecom holds a 34.20% stake in the telecom operator. The remaining shares are owned by institutional and general investors.
Announces highest-ever dividend for 2024
Grameenphone announced it would pay the highest-ever 330% cash dividend, or Tk33 per share, for 2024.
Having already paid an interim dividend of Tk16 per share, it will pay an additional Tk17 for the past year, according to company statements to shareholders.
The total cash dividends of Tk4,455 crore for 2024 will be 22.73% higher than the company's annual net profit. For the first time since 2018, the company is going to pay out more dividends than its annual profit.
Analysts had anticipated an accelerated dividend payout as multinational companies had paid less in 2022 and 2023 due to a difficult foreign exchange situation in Bangladesh, which eased significantly in 2024.
In 2024, Grameenphone experienced a slight decline in revenue, which fell to Tk 15,845 crore. However, net profit increased by 10%, reaching Tk 3,630 crore. The company's earnings per share (EPS) stood at Tk 26.89 at year-end.
In a press release, its CEO Yasir Azman, acknowledging the business impacts of "rising inflation and the continuously decreasing GDP," said, "We remain focused on delivering long-term value and stability for our investors."
He also promised attractive dividends as part of GP's strategy to provide shareholders with consistent and reliable returns, even in the face of short-term market fluctuations.
Grameenphone's Chief Financial Officer Otto Risbakk attributed the success to its strong balance sheet, which allowed the company to continue its "long-term perspective alongside a lucrative and predictable dividend policy, despite a challenging economic environment."
