Transcom, Kumudini to buy Reliance Insurance shares worth Tk5.85 crore

Trinco Ltd and Transfin Trading Ltd of Transcom Group and Kumudini Welfare Trust Of Bengal (BD) Ltd will buy 12 lakh shares, worth Tk5.85 crore, of Reliance Insurance Limited. 

They will do it through the block market at the Dhaka Stock Exchange (DSE) within the next 30 days.

The three companies are also corporate sponsors of Reliance Insurance.

Among them, Transfin and Trinco each will buy three lakh shares and Kumudini will buy six lakh shares of Reliance Insurance.

They will buy the shares at the current market price.

The closing price of each share of Reliance Insurance on Sunday was Tk48.80 at the DSE, while its highest price was Tk59.70 each in the last 12 months.

Meanwhile, in the first half of this year, Reliance Insurance posted earnings per share of Tk2.49.

The company has paid 25 percent cash dividend to shareholders for the last financial year which ended on December 31.

Arshad Waliur Rahman, Shehnaz Rahman and Rajiv Prasad Saha are on the board of Reliance Insurance as directors nominated by Transfin, Trinco and Kumudini Welfare, respectively.

Reliance Insurance was listed on the DSE in 1995 and its paid-up capital is Tk105 crore.

Sponsors, directors jointly have 65.77% stake in the company, institutional investors have 6.35% and general investors have 27.88%.

Meanwhile, Azam J Chowdhury, director of Prime Bank, will buy three lakh shares of the bank through the block market at the DSE within the next 30 days.

He intends to buy the shares at the prevailing market price. 

Azam is the former chairman of the bank, and his son Tanjil Chowdhury now serves as the bank's chairman.

East Coast Shipping Lines Ltd is a corporate sponsor of the bank and holds a 2% share in it.

Azam J Chowdhury is on the board of Prime Bank as a director, nominated by the East Coast Shipping.

In the last month he bought 7.5 lakh of the bank's shares.