Share price of paramount insurance rose to over 600 per cent within only 20 weeks range from Tk 22 in January this year to Tk 157 today. If an individual invest Tk 10,000 for Paramount Insurance he would get around 63 shares of the company and will probably get maximum Tk 65 as dividend from the company after Jun closure, industry sources said.

The Tk 33 crore company’s market capitalization stood at Tk 521 crore which earned Tk 3.8 crore in 2019 and expected a very minimum profit in 2020. Coronavirus pandemic has seriously impacted business on getting new policy and clinets, sources said.

Capital market analyst suspected that an organized group of gamblers in connivance with sponsor directors have played vital role in moving forward prices of the company.

Sources said sponsor directors have released some shares from institutional pocket to general investors as general investors are now holding 38.28 percent share.

Meanwhile, the overall insurance sector experienced a high demand of its scripts at capital market without any valid reason. On an average almost all companies share prices increased by 250 percent during last 3 months but the business of the sector has decreased by 70 percent for the virus pandemic.

Market experts underscored the need for scrutinizing the real fact behind the abnormal growth of the share price for securing the investment of the capital market.

Industry insiders said, the history of paying dividends of Paramount Insurance is not very pleasant, even though the share price has skyrocketed. In 2018, the company paid investors a 5 percent bonus share dividend from the profit.

Chairman of the Board of Directors of Paramount Insurance Nawz Ahmed in its latest annual report has admitted that doing business 2020 will be another tough year.

“There is a liquidity crisis in the country. Hopefully, the bank rates goes down. The unavailability of gas & power will continue to impact investments and may adversely affect growth & employment. In order to survive, one of our Paramount concerns shall be to bring down the cost of management expenses and to improve our service & efficiency by modern technology & IT based insurance activity.” The chairman wrote.