The share price of South Bangla Agriculture and Commerce Bank (SBAC), a newly listed company, has doubled in just eight working days. The bank’s share price has risen at the highest rate every day in these eight days. In the interval of 7 working days, the share price of 10 taka has increased by 21 taka 20 paisa.
As a rule, the share price of a company listed on the stock exchange cannot rise or fall more than 10 percent in one day. South Bangla Bank’s share price has risen 10 percent every day since its inception. The company was listed on the stock exchange on August 11. Earlier, on July 5, its initial public offering or IPO subscription began. The company has sold each share at Tk 10 in the IPO. And collected Tk 100 crore from the market through IPO.
There were no sellers of its shares on the main stock exchange Dhaka Stock Exchange (DSE) until a few days after the start of trading. All those who have received shares of the bank in the IPO have not sold those shares but have kept them in their hands. On the other hand in the first few days it had huge buyers of shares. Although there were not many sellers in the first three or four days, the number of sellers has gradually increased since then. The amount of shares exchanged has also increased. A total of 32.26 lakh shares of the company were traded on the DSE on Monday with a market value of around Tk 6 crore.
Meanwhile, as a result of the highest price increase in 7 consecutive working days, the share price of this fourth generation bank is higher than that of many first, second and third generation banks. Even the share price of South Bengal is higher than the share price of many good old quality banks.
Market analysts say this is unreasonable. Because, the shares of many good quality banks are now available at 12 to 15 rupees. It is not clear why investors are buying the shares of this fourth generation bank at such a high price.