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Imagine investing Tk 5 million and seeing it turn into Tk 20 million in just four months. Sounds like a fairy tale? For many investors in Pragati Life Insurance, that fantasy has come true.

The company’s share price has been on a meteoric rise since mid-June, making several investors overnight millionaires. Despite repeated cautions from the Dhaka Stock Exchange (DSE), the stock continues to climb unabated.

Market data show that on June 15, Pragati Life shares traded at Tk 79.90 each. By October 11, the price had jumped to Tk 266.50, marking a nearly fourfold increase in just four months.

During this period, some investors reportedly booked profits of two to three times their initial investments.

DSE seeks explanation

The DSE has sent two separate queries to the company over the past two months, asking for explanations behind the unusual price surge. In both replies, Pragati Life said it had no undisclosed price-sensitive information (PSI) that could justify such a sharp rise.

The exchange also published a warning notice on its website, urging investors to consider the risks before buying at such inflated prices. However, market enthusiasm shows little sign of cooling, with the stock still drawing strong buying interest from retail investors.

Financials show steady growth

According to the company’s latest financial statement, Pragati Life’s life insurance fund stood at Tk 697.63 crore as of June 30, 2025, up from Tk 635.32 crore a year earlier — an increase of Tk 62.31 crore.

For the 2024 financial year, the company declared a 15% cash dividend for shareholders. It paid 14% cash dividend for FY2023 and 12% for FY2022, indicating steady, moderate growth over recent years.

Ownership and capital structure

Listed on the stock market in 2006, Pragati Life has an authorized capital of Tk 100 crore and a paid-up capital of Tk 32.54 crore, divided into 32.55 million shares.

Of these, 40.62% shares are held by sponsor-directors, 21.35% by institutional investors, and the remaining 38.03% by general shareholders.

Analysts urge caution

Market analysts say the stock’s extraordinary rally appears driven more by speculative trading than by company fundamentals. They warn that a sharp correction could follow once short-term investors start profit-taking.

The DSE has advised investors to exercise “extreme caution” when dealing in highly volatile stocks like Pragati Life, reminding them that steep, unexplained price movements often come with elevated risks.