Sandhani Life Insurance experienced a remarkable uptick in its shares, soaring over 23% from January 11 to January 15 at the Dhaka Stock Exchange (DSE). This surge follows a prolonged period, from October 3, 2023, to January 10, 2024, where the company’s share price remained stagnant at the floor price of Tk26.9. The recent boost is attributed to the appointment of the company’s former CEO, Ahsanul Islam (Titu), as a state minister in the government.
After Ahsanul’s appointment, the closing price on Monday reached Tk33.3, signaling a substantial gain of Tk6.4 within just three trading days.
Ahsanul Islam, who served as the CEO for several years before resigning in 2018 to become an adviser to the company, still holds a significant stake of 36.56 lakh shares. Market insiders note that Ahsanul Islam’s family members dominate Sandhani Life Insurance’s board.
Investors are optimistic about the potential positive impact of Ahsanul’s new role as a state minister on the insurance company. His close ties to the government are seen as a potential avenue for new business opportunities. Ahsanul Islam, elected as a member of parliament from Tangail in the 12th national election, took oath as a cabinet member on January 11.
Sandhani Life Insurance, listed on stock exchanges in 1996, has sponsors and directors holding 29.45% of shares, institutional investors with 12.82%, and general investors with 57.73%. The company paid a 12% cash dividend to shareholders for the year 2022, maintaining the same dividend rate since 2019.
As of September last year, the company’s life fund stood at Tk672 crore, reflecting a 7% decrease compared to the previous year. Despite this, the recent market response suggests heightened investor confidence and optimism regarding the company’s future prospects under Ahsanul Islam’s influence in the government.
