SKICL shares down 5%, bucking 23rd straight session rally

Shares of newly listed Sena Kalyan Insurance Company Limited (SKICL) ended a 23rd straight session rally on Wednesday, as investors pulled back from a monster run.

The company’s stock closed down 5.5 per cent.

SKICL, a subsidiary of Sena Kalyan Sangstha (SKS) operated by the Bangladesh Armed Forces, debuted on the stock exchanges on November 7, 2021 and opened at Tk 16 on the face value of Tk 10.

The share price of the general insurance company rose 771 per cent to Tk 87.10 since its debut. Meanwhile, following the ‘abnormal’ price hike, the DSE served a show-cause notice on the company on Sunday.

The company, however in a knee-jerk response, informed the DSE that there is no undisclosed price sensitive information of the company for the recent unusual price hike.

The Insurance Company has set a record of the longest ever rally by any individual stock in the history of capital markets. Its shares were frozen in the upper limit for the 23rd on Monday, surpassing the previous record made by Robi that had a 12th consecutive positive session since its debut in December last year.

The general insurers earned Tk 8.28 crore in net profit in the January-September period of this year.

During the period, the company’s earnings per share (EPS) stood at Tk3.45, which was Tk2.07 considering Pre-IPO paid-up shares. In the July-September quarter, its net profit was Tk1.68 crore and EPS was Tk0.70. The pre-IPO net asset value per share is Tk23.64 as of 30 September 2021.

On August 11, SKICL got IPO approval and raised Tk 16 crore from the capital market. It issued 1.80 crore shares at a face value of Tk 10 each.

As per the financial statement for the year ended on December 31, 2020, the company’s net asset value per share is Tk 21.09 (without revaluation) and the earnings per share of Tk 3.93 while the weighted average EPS for the last five years was Tk 2.65.

Sena Kalyan Insurance was established in 2013. Its main business areas are fire, marine, engineering, motor, and aviation insurance.