Loss-making Information Services Network soars 72% in 10 Days

The share price of Information Services Network (ISN), the country's first internet service provider (ISP), has jumped 72% in just 10 trading days despite the company reporting Tk19 lakh in losses and disclosing no new information.

According to the Dhaka Stock Exchange (DSE) website, on 7 August, the struggling company's share price was Tk42.20. Within 10 working days, it climbed to Tk72.60 yesterday (21 August).

In response to repeated queries from the DSE, the company said it had no undisclosed, price-sensitive information to explain the sharp rise in price and trading volume.

Market insiders said several low paid-up companies have seen abnormal price hikes without any valid reason last week.

They further said ISN has been struggling due to its failure to upgrade technology to survive in a competitive market and cautioned that such stocks could be targeted by manipulators, posing risks to general investors.

In the first nine months of FY2024-25 (July-March), the company earned revenue of Tk9.65 crore, up from Tk7.78 crore a year earlier. However, it reported a Tk19 lakh loss, compared to a Tk22 lakh profit in the same period of the previous year. Its loss per share stood at Tk0.17, against an earnings per share (EPS) of Tk0.20 last year.

In the January-March quarter, it posted revenue of Tk3.29 crore, up from Tk2.86 crore in the same period of the previous year. However, the company recorded a quarterly loss of Tk10 lakh, compared to a profit of Tk2 lakh a year ago.

HRC Group and Ispahani Group jointly established the company in 1996. Later, Ispahani withdrew its stake.

The paid-up capital of the company stands at Tk10.92 crore. Sponsors and directors hold 21.47% of the shares, institutional investors hold 9.79%, and general investors own the remaining 68.74%.

The company initially performed well but eventually lost market share to competitors due to a lack of modernisation and skilled manpower.