Khulna Printing & Packaging Limited has lost 40 per cent of its market value in about two weeks since the stock market watchdog asked the Dhaka bourse to find out reasons behind the unusual movement of the stock.
The loss-making company traded at only Tk 9.8 per share in October last year. Within just four months, the stock moved up on the Dhaka exchange by 480 per cent to Tk 56.8 per share.
The stock then plunged by 40 per cent to Tk 33.8 per share in 12 trading sessions since the Bangladesh Securities and Exchange Commission (BSEC) ordered a probe into the price escalation.
The company, which once manufactured packaging items, such as cartons and poly sheet bags, has not been operating for at least two years. It showed a loss of Tk 226 million for FY22, according to the latest financial statement.
It also informed the DSE that there was no information to influence the stock price.
Inspection teams of the DSE visited the factory of Khulna Printing on several occasions and found it closed. The latest visit was on February 4.
After that, the BSEC ordered the inquiry.
In an order, the securities regulator said the price of Khulna Printing had shot up by 119 per cent between January 2 and February 5 this year, but there was no undisclosed price sensitive information during the period.
Khulna Printing was a controversial company from the very beginning. It used false information to list in the stock market in FY14. Having raised Tk 400 million through IPO, the company started showing losses from FY17.
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