Alif Industries' deceptive plan to push up stock scrapped

The securities regulator cancelled its permission to listed textile sector firm Alif Industries for collection of Tk 2 billion by issuing shares to its directors after repeated time extension had failed to serve the purpose.

The new order was issued by the Bangladesh Securities and Exchange Commission (BSEC) on Wednesday.

According to the press release, Alif Industries had sought the regulator's consent to raise the money by giving shares to its existing directors at Tk 22 each. The BSEC accepted the proposal in January last year but the directors did not subscribe the shares even when the time for subscription got extended several times.

Meanwhile, the share price jumped from Tk 50 per share to Tk 136 per share on the Dhaka Stock Exchange as investors felt encouraged to invest in the company on learning about the equity investment by directors. The stock fell to Tk 95.40 per share on Wednesday.

Alif Industries supposedly wanted to pay back the loans of C&A textiles if the money could be collected.

It acquired C&A textiles, a poor-performing company, a few years back.

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