Index Agro Industries, the poultry and fish feed producer, is witnessing an unprecedented price hike and increase in volume of shares despite no undisclosed price sensitive information (PSI).
Within the five trading days, the company's share price jumped more than 46 per cent or more than Tk 38 each to close at Tk 121.60 on Monday on the Dhaka Stock Exchange (DSE).
It was also the highest closing price since listing with the stock market on April 7 of this year. Index Agro was also the day's top gainer. The company's share price was Tk83.20 five days ago on June 8.
Following the 'abnormal'price hike, the DSE served a show-cause notice on the company Sunday.
The company, however in a knee-jerk response, informed the DSE on Monday that there is no undisclosed price sensitive information for recent unusual price hike and increase in volume of shares.
Even after being served show-cause notice and overall market decline, the company's share price has not stopped rising and soared 9.95 per cent further on Monday, which may hit innocent investors, said an analyst at a leading brokerage firm.
Analysts said the investors should not pay heed to any rumours related to companies and take their investment decisions prudently.
They advised investors to make their investment decisions based on the company's fundamentals, technical analysis and disclosed information in order to avert any misfortune.
Senior executives of the company could not be reached over telephone.
Index Agro Industries, which made trading debut on the bourses on April 7 of this year, raised Tk 500 million under the book-building method to expand its business.
The company's cut-off price was Tk 62 each, but the general investors, including non-resident Bangladeshis, got its IPO shares at Tk 50 each, a 20 per cent on the cut-off price.
The company will use the IPO proceeds to acquire machinery and equipment, construction buildings and civil works, and cater expenditures for the IPO process.
Index Agro has posted a 12.40 per cent rise in its third quarter (Q3) earnings to Tk 1.45 for January-March, 2021 compared to the same quarter of the previous year.
The company's nine months EPS stood at Tk 4.81 for July 2020-March 2021 as against Tk 4.90 for July 2019-March 2020.
Its net operating cash flow per share (NOCFPS) was Tk 2.50 for July 2020-March 2021 as against Tk 9.01 for July 2019-March 2020.
The net asset value (NAV) per share was Tk 57.34 as on March 31, 2021 and Tk 51.81 as on June 30, 2020.
The company's paid-up capital is Tk 472.54 million and authorized capital is Tk 1.0 billion while total number of securities is 47.25 million.
The sponsor-directors own 57.77 per cent stake in the company, while institutional investors own 23.51 per cent and the general public held 18.72 per cent as on April 30, 2021, the DSE data showed.
Incorporated in 2000, the principal activities of Index Agro Industries are manufacturing and marketing poultry feed, fish feed and producing day-old chicks.
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