DSE delists Rahima Food, Modern Dyeing

No trade of the stocks from today

FE Report | Published: July 19, 2018 10:26:25 | Updated: July 19, 2018 16:06:25

The Dhaka Stock Exchange (DSE) has delisted Rahima Food Corporation and Modern Dyeing & Screen Printing as the companies were not in operation for long time.

The board of directors of the premier bourse took the decision at a meeting held on Wednesday evening.

The DSE has also taken into account the unusual price hike of the stocks and non-compliances of the companies while taking the decision of delisting the companies.

As per the decision, the share trading of the companies will not take place from today (Thursday).

Minhaz Mannan Emon, a DSE director, said the two companies were not complying with the rules and regulations of the exchange for long time.

"The companies are also not in production for long time. Moreover, an unhealthy situation erupted in the market following the unusual price hike of the stocks," he told the FE.

He said the premier bourse took the decision considering the interest of the investors as well as the market.

"The companies may be shifted to the OTC (over-the-counter) market," he added.

Of the two de-listed companies, Rahima Food Corporation is also listed with the Chittagong Stock Exchange (CSE).

Asked, CSE Managing Director M. Shaifur Rahman Mazumdar said the CSE would also take decision in this regard considering the overall situation.

"We are yet to take decision regarding de-listing of Rahima Food Corporation. We will take decision based on information of our department concerned," he said.

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 remains suspended and closed at Tk 174.70 each on the DSE on Wednesday.

Modern Dyeing's share price also soared 88 per cent or Tk 153 each in the past two years and closed Tk 326.30 each on Wednesday at the Dhaka bourse.

In reply to a DSE query on April 24, 2018 regarding their current status of operation, Rahima Food Corporation 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.

In response to another DSE query on June 05, 2018, the Modern Dyeing & Screen Printing has informed that there was no undisclosed price sensitive information of the company for recent unusual price hike of shares.

Earlier the auditor's report published on the DSE website on November 14, 2017 said that Modern Dyeing & Screen Printing remained out of production/operation since January 31, 2010.

Since then the company published no update regarding commencement of its operation.

Modern Dyeing & Screen Printing, which was a 'Z' category company, was listed with the stock exchanges in 1988.

The company's sponsor-directors hold 64.98 per cent shares while institutions hold 5.01 per cent and general shareholders 30.01 per cent as of June 30, 2018.


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