Bangladesh
4 months ago

DSE finds Khulna Printing factory shut

-File photo
-File photo

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An inspection team of the Dhaka Stock Exchange (DSE) found Khulna Printing & Packaging factory shut during a visit on Sunday.

In a stock exchange filing, the premier bourse informed that a DSE team went to Khulna, where the company's factory is located, to examine its current operational status.

But they could not enter the factory premises as the factory was closed.

Khulna Printing got listed in the stock market in 2014. The company has been suffering from a severe working capital shortage and has incurred losses for the past five years.

Losses piled up to Tk 960 million until FY22.

The company failed to declare any dividend since FY20. It disbursed only 0.25 per cent cash dividends for the last time.

Despite the poor performance, the stock continued to soar on the Dhaka bourse and jumped 406 per cent in four months to Tk 51.70 by Sunday.

The stock made it to the top gainers' list frequently in recent times.

The company reported a loss of Tk 8 million in July-December 2022 and since then has not published any financial reports.

The unusual price movement prompted the Dhaka bourse to serve a show-cause notice to the company several times.

But the company has not provided any response to the query.

In September last year, the DSE identified 14 poor performing companies, aiming to expose the real scenario of the companies to investors.

Some companies have not been in operation for years and failed to declare dividends but they refrained from making any disclosure.

Recently, the DSE team inspected Famitex, Usmania Glass Sheet Factory, Regent Textile, Dulamia Cotton, and Northern Jute Manufacturing, and found all of them closed.

After completing factory visits, the DSE will submit reports to the Bangladesh Securities and Exchange Commission, which will then take actions as per the securities laws, said a DSE official.

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