The Power Grid Company of Bangladesh recently surpassed Grameenphone (GP) as the largest company by market value on both bourses, surprising market analysts. Until May 12, GP held the top position with a market value of nearly Tk 32,000 crore, making up 8.4% of the total market capitalization on the Dhaka Stock Exchange (DSE). However, by May 13, Power Grid’s market value unexpectedly surged to over Tk 37,500 crore from less than Tk 3,000 crore the previous session. This sharp increase was due to an approximate 11-fold rise in its paid-up capital, from Tk 712 crore to Tk 8,555 crore, as the company issued fresh shares to the government against its significant share money deposit.
The bourses mistakenly included the newly issued preference shares in the calculation of Power Grid’s market capitalization. Market capitalization typically considers the total market price of all common shares, representing the ultimate ownership and equity stakes of common shareholders. This accounting oversight led to Power Grid’s inflated market value, temporarily positioning it ahead of GP in market rankings.
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