Intech Shares Surge 26% in Four Days Despite Years of Losses

Despite recording losses in four of the past five years, the share price of technology company Intech Limited, listed on the country’s capital market, has surged by nearly 26 percent within just four days. Although the company reported a net loss of Tk 11.3 million in the latest completed fiscal year 2024–25, it topped the list of gainers among companies traded on the Dhaka Stock Exchange (DSE) on March 5.

Questions have emerged online about how the company’s share price is rising despite having liabilities exceeding its assets. Market analysis shows that the price of Intech’s shares began rising two days before Mostakur Rahman was appointed the new Governor of Bangladesh Bank on February 25. The day after the governor’s appointment, the share price increased by nearly 10 percent. Within just four days between February 22 and February 26, the share price climbed from Tk 29.70 to Tk 37.40.

According to sources, on the last trading day of the week, Thursday, March 5, the share price of Intech Limited on the DSE rose by Tk 1.06, or 4.66 percent, compared to the previous trading day. As a result, the company secured the top position on the price gainers’ list.

However, Company Secretary Mohammad Zayedul Islam has avoided questions regarding the sudden surge in the share price and the alleged role of the governor in Intech Limited.

Market sources say two rumours are circulating behind the sudden increase in the company’s share price.

The first rumour suggests that the company is linked to the personal interests of the governor and that he holds a significant ownership stake. In reality, the governor’s ownership stands at only 0.50 percent. According to BSEC regulations, he has not been able to sell his shares.

The second rumour claims that the current board of directors of Intech is being led by the controversial Chattogram-based S Alam Group, which allegedly has ties with the governor. In reality, the governor had already divested most of his shares earlier, while the S Alam Group became the owner by purchasing shares from minority shareholders. As other entrepreneur-directors have not shown interest in increasing their ownership, the new governor has been unable to sell his remaining 0.50 percent stake, which he has held for many years.

According to sources, when Intech was listed on the stock market in 2002, the current governor Mostakur Rahman served as the company’s founder and chairman. At that time, he held 66.33 percent of the company’s total shares. Currently, his shareholding stands at 0.50 percent. The governor has no role in the company at present and has not been part of its board of directors for many years.

Financially, Intech remains weak. The company incurred a loss of Tk 86.1 million in the fiscal year 2020–21, and losses continued in the following years. In the latest 2024–25 fiscal year, the company reported a net loss of Tk 11.3 million. Its accumulated losses amount to Tk 327.2 million, while the company’s assets stand at negative Tk 14 million.

DBTech/NHT/MUM/OR