The Dhaka Stock Exchange (DSE) has not yet adjusted the rights share price of the company, while the Chittagong Stock Exchange (CSE) has done so
Investors became confused about the adjustment of the right share price of the publicly listed company Pragati Life Insurance Ltd on Tuesday.
The Dhaka Stock Exchange (DSE) has not yet adjusted the right share price of the company, while the Chittagong Stock Exchange (CSE) has done so.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to the market price.
The range of the company's share price on Tuesday at the DSE was Tk113.70 to Tk114, while at CSE it was Tk97 to 105.
Real adjustment of the company's right share price was Tk70.65 in normal time. But due to floor price, it is not possible for the stock exchanges to adjust the right share price, said sources.
As a result, the investors have been facing confusion in the trading of the company's shares. Some investors made a loss and some profit by trading the company's shares.
A source at the CSE told The Business Standard, "We cannot really adjust the company's shares due to floor price. That is why it has been adjusted at the level of the floor price."
"We did not get any direction from the regulator in this regard till now," he added.
Kazi Sanaul Hoq, managing director of DSE, told The Business Standard, "DSE did not adjust the right shares of Pragati Life Insurance due to floor price. But we will adjust the price very soon after getting direction from the regulator."
"We already have informed the regulator duly in this regard," he said.
An official of the Bangladesh Securities and Exchange Commission told The Business Standard that the commission was already aware of this issue. The commission will seek an explanation from the stock exchanges in this regard very soon.
He also said the commission will take necessary steps so that this situation does not arise again.
The record date of rights share of the company was September 7, and the subscription period was set from September 24 till October 20, 2020, aiming to raise Tk23.03 crore through rights issuance.
The regulator allowed Pragati Life Insurance's rights issue on August 13, 2020.
The company will invest the money raised through a right share issue in treasury bonds and fixed deposits of banks and financial institutions.
The company issued more than 1.54 crore rights shares of Tk15 each, including Tk5.0 as a premium to raise the said amount.
The company will issue one rights share against each existing share (1R:1).
According to the rights share document, the company's net asset value per share Tk37.29 as of December 31, 2018.
LankaBangla Investments Limited was the issue manager of the company.