No price-sensitive news, yet shares of Rupali Bank, Indo-Bangla Pharma, City Insurance jump
The shares of three listed companies — Rupali Bank, Indo-Bangla Pharma, and City General Insurance — have seen unusual price surges over the past month on the Dhaka Stock Exchange (DSE), despite no apparent reason or disclosure of price-sensitive information.
In response to recent queries from the DSE regarding the abnormal rise in share prices and trading volumes, all three companies stated that they had no undisclosed price-sensitive information to explain the movement.
Rupali Bank
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On 25 June, Rupali Bank's share price was Tk16.90. Since then, the price has gradually increased, jumping by 45% to reach Tk24.50 as of the latest trading session.
The most recent price-sensitive disclosure was published on 30 June, in which the bank announced plans to issue 45.33 crore new shares at Tk15 each—including a Tk5 premium—to the government against its share money deposit.
Mohammed Shahedur Rahman, company secretary of Rupali Bank, told TBS earlier that the government has provided equity support amounting to Tk679.99 crore to the bank over time as share money deposits.
"As per regulations, this equity must be converted to paid-up capital through share issuance. Hence, the board has approved the move to issue shares to the government," he said.
Shahedur added that since the funds have already been utilised, the share issuance will only increase the bank's paid-up capital and will not result in any new inflow of funds.
Earlier, it had reported a massive provision shortfall of Tk15,375 crore as of 31 December 2024, prompting its board of directors to withhold any dividend declaration for the year.
In 2024, Rupali Bank's consolidated profit after tax fell sharply to Tk11.22 crore, down from Tk62.46 crore in the same period of the previous year.
In the first quarter of 2025 (January-March), the bank reported a consolidated net profit of Tk6.34 crore, significantly down from Tk22.93 crore in the same period of 2024.
Indo-Bangla Pharma
From 25 June to 8 July, the company's share price surged by 56%, reaching Tk14.20. However, since 4 May, the company has not released any price-sensitive disclosures.
The last such disclosure was its financial statement for the first three quarters of FY25, published on 4 May, in which it reported a loss per share of Tk0.17.
It had paid a 0.1% cash dividend in FY24, despite incurring a loss of Tk4.09 crore that year.
City Insurance
Since 7 May, City Insurance's share jumped by 66% to reach Tk47.10 by 8 July.
The last such disclosure was its financial statement for the first quarter of 2025, published on 14 May, in which it reported a 6% growth in earnings per share to Tk0.90.
It had paid a 0.1% cash dividend in FY24 despite incurring a loss of Tk4.09 crore that year.
Earlier, it had paid a 10% cash dividend to its shareholders for the last year.
