The Dhaka Stock Exchange (DSE) will investigate the unusual surge in the share prices of Himadri Limited, which is currently being traded on the SME platform of the stock exchanges.


The Bangladesh Securities and Exchange Commission (BSEC) on Thursday directed the DSE to carry out the probe within 10 working days after receiving its letter.


According to a press release issued by the regulator, the share price of the company, which was Tk38.80 on 27 April 2023, soared to Tk3,069.2 on 29 August.  


On Thursday, the shares closed at Tk3713.70 each on the Dhaka bourse.


Himadri Limited, a subsidiary of Ejab Group, had earlier decided to increase its authorised capital from Tk2 crore to Tk50 crore to comply with the regulatory requirement.


Incorporated in 1974, the company mainly provides cold storage facilities for agro-based products such as potatoes in northern Bangladesh. Currently, it has six potato cold storages in Rangpur, Bogura, Joypurhat, Thakurgaon, Gaibandha, and Dinajpur.

A senior official at the company said it is an old company that was listed on the mainboard of the DSE earlier. It now wants to come back to the mainboard again.


For the company to return to the mainboard, it will have to fulfil some regulatory requirements. As part of the requirements, the company decided to increase its authorised capital, he added.


To meet the growing demand, it has a plan to increase the number of cold storages in different locations of the country and also expand the product ranges like fruits and vegetables that can be stored, he continued.


In September 2021, Himadri Limited was shifted from the over-the-counter (OTC) market to the SME platform. On the OTC market, the company's shares were last traded on 8 March 2014.


From October to December 2022, its net profit stood at Tk4.06 crore, which was Tk1.99 crore in the same period of the previous year, according to the stock exchange disclosure.


Its earnings per share stood at Tk54.14, which was Tk26.51 one year ago.


In the first six months of the current fiscal year, its net profit stood at Tk3.70 crore, which was Tk2.26 crore in the previous year. Its net asset value per share stood at Tk1876.72 at the end of December 2022.


As of 30 June 2023, sponsors and directors jointly held 65.72%, the government 1.48%, and the general public 32.80% of the shares in the company, according to the DSE website. 



Source: The Business Standard

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