Regulator orders probe into price escalation of Taufika Foods

Bangladesh Stock market watchdog has ordered the premier bourse to find out reasons behind the 250 per cent increase in the share price of Taufika Foods and Lovello Ice-cream in less than six months to July 15.

The stock of Taufika Foods was around Tk 30 per share on the Dhaka exchange at the end of January this year and then it climbed to Tk 106.4 per share by July 15 this year. It fell back to Tk 85 per share by Monday.

The Bangladesh Securities and Exchange Commission (BSEC) suspects manipulation behind the quick escalation of the stock price.

The Dhaka Stock Exchange (DSE) has been asked to submit a probe report within 30 working days.

In the order, the market watchdog asked the DSE to find out whether the price hike was due to any market manipulation or insider trading or any other market abuse.

Taufika Foods and Lovello Ice-cream is listed under the food & allied sector.

It showed a 12.38 per cent increase in profit to Tk 108.50 million in the nine months to March this year.

Taufika Foods decided to increase its production capacity two weeks ago.

It has made a plan to invest Tk 1.50 billion to set up its second unit to boost production amid growing demand.

The ice-cream producer has already purchased 59.16 decimals of land for the second unit at Bhaluka in Mymensingh, according to a statement.

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