Meghna Insurance share soars 112% in 8 days

The stock price of newly-listed Meghna Insurance Company Limited soared on the Dhaka Stock Exchange over the last seven straight sessions.

The company’s share price witnessed a rise of 112 per cent during the period. Its share price rose almost upper limit 9.84 per cent to Tk 21.20 on Sunday, which was Tk 10 on June 8, 2022.

It was in the list of week’s top gainer, surging 59.50 per cent during the last week.

The stock market regulator - Bangladesh Securities and Exchange Commission (BSEC) -- approved the company’s IPO proposal on March 1, this year to raise Tk 16 crore under the fixed price method.

It will invest Tk2.4 crore in government Treasury bonds, Tk3.2 crore in listed securities, and Tk9.52 crore in fixed deposit receipts (FDRs).

According to Meghna Insurance un-audited Third quarter financial statements, its profit after tax is Tk 22 lac and basic earnings per share (EPS) of Tk 0.09 for the 3 months (July-September 2021) period ended on 30 September 2021 as against profit after tax of Tk Nagative 5.31 Crore and basic EPS of negative Tk 6.69 for the same period of the previous year.

However, Post-IPO basic EPS for the 03 months (July-September 2021) period ended on 30 September 2021 would be Tk 0.06.

As of Sunday, its market capitalisation stood at Tk 77 crore. Its paid-up capital was Tk 40 crore and surplus reserve Tk 12 crore.

There are 78 companies in the insurance sector of Bangladesh. Of them, 32 are life insurance and 46 are non-life insurance. Fifty-Four companies are listed on the stock exchanges.