Union Capital Ltd, a listed non-bank financial institution (NBFI), elected GM Khurshid Alam as its new chairman.
He represents EC Securities Ltd - a brokerage firm of the East Coast Group - in the board of Union Capital.
He is also the chairman of Prime Bank Securities Limited, independent director at Mobil-Jamuna Limited, and director at Prime Bank Investment Limited.
Riding on the recent news of Prime Bank Ltd entering the board of Union Capital, the NBFI's share prices soared 81% to Tk13.2 each on Wednesday from Tk7.3 on 2 August.
Prime Bank's Director Azam J Chowdhury, also the founder and chairman of East Coast Group, confirmed the development earlier.
A number of analysts are sceptical about the soaring stock prices considering Union Capital's fragile financial health and the uncertainty in its turnaround.
Taking over the equity market operations from Hong Kong-based Peregrine Capital, and securing an NBFI licence from the Bangladesh Bank, a group of local entrepreneurs began Union Capital in the late 1990s.
It entered the merchant banking business in the early 2000s and remained more focused on capital market operations than on leasing or lending businesses.
Its 2007 initial public offering was a great success as the capital market was a profitable business in the then bull market that continued till the end of 2010.