Share price of Emerald Oil Industries is soaring although there is no undisclosed price sensitive information (PSI) of the company for recent unusual price hike.
Emerald Oil, which produces the Spondon Edible oil by processing rice bran collected from auto rice mills, has also been facing problem since the suit of Anti-Corruption Commission (ACC) regarding loan of Basic Bank.
The company has been unable to repay loans from Basic Bank and loan facilities have been suspended and litigation has been lodged against the company and its directors by ACC.
Within three trading sessions -- December 20, 21 and 24 -- the company's share price jumped nearly 30 per cent or Tk 5.30 each to close at Tk 23.10 on Sunday amid sluggish market movement. The company's share price was Tk 17.80 on December 19.
Following the recent abnormal price hike of the company's share, the Chittagong Stock Exchange (CSE) served show-cause notice on the company.
The company informed the CSE regarding the upward trend of its share price and volume there is no undisclosed price sensitive information of the company for recent unusual price hike of shares.
In April this year, the company said that they had been facing problem since the suit of Anti-Corruption Commission (ACC) regarding loan of Basic Bank. As a result, management of the company is facing some difficulties.
But at present, they are looking forward and very hopeful to bounce back to the business within a short period.
"We are requested to keep faith on us and avoiding all kinds of excitement news in this regard. At present, we are operating the commercial operation in small scale due to shortage of sufficient working capital," the company said in April.
The company also said that they are seriously trying to form a new management and starting the commercial operation in full capacity and hopeful to overcome the situation as early as possible.
Emerald Oil, which was listed on the Dhaka bourse in 2014, disbursed 10 per cent stock dividend for the year ended on June 30, 2016.
The company has reported earnings per share (EPS) of only Tk 0.02 for July-September, 2017 as against Tk 1.16 for July-September, 2016.
The company's paid-up capital is Tk 597.14 million and authorised capital is Tk 1.0 billion, while the total number of securities is 59.71 million.
The sponsor-directors own 28.42 per cent stake in the company while the institutional investors own 6.99 per cent and the general public 64.59 per cent as on November 30, 2017, the DSE data shows.
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