CSE suspends trading of Rahima Food shares

It may delist the company following legal procedure


FE Report | Published: July 20, 2018 10:32:57 | Updated: July 22, 2018 12:37:00


The Chittagong Stock Exchange (CSE) has suspended the share trading of Rahima Food Corporation Limited as its operation remained closed for more than three years.

The suspension came into effect from Thursday.

Earlier on Wednesday, the Dhaka Stock Exchange (DSE) delisted the company on the same ground.

As a result, the company's share trading did not take place on Thursday in both the stock exchanges.

Asked, why the port city bourse did not delist the company, CSE Managing Director M. Shaifur Rahman Mazumdar said they could not yet complete the legal procedure required for delisting the company.

"The CSE is conducting investigation into some other companies, including Rahima Food Corporation which will be delisted on completion of the legal procedures," he said.

The share price of Rahina Food jumped more than 215 per cent or Tk 120 each in a period of last two years despite the company's production remaining suspended and closed at Tk 174.70 each on the DSE on Wednesday.

In reply to a DSE query on April 24, 2018 regarding their current status of operation, the company said their operational activities had been closed down since June 13, 2013 and had not yet commenced.

Rahima Food Corporation, which was a 'Z' category company, was listed with the stock exchanges in 1997.

The company's sponsor-directors hold 37.38 per cent shares while institutions hold 20.67 per cent, foreigners hold 4.99 per cent and general public hold 36.96 per cent as of June 30, 2018.

mufazzal.fe@gmail.com

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