The decision was made yesterday, after the Spondon-branded edible oil producer ceased production due to a prolonged factory shutdown
The Dhaka Stock Exchange (DSE) has downgraded Emerald Oil Industries to the Z category, following the suspension of its operations for more than six months.
The decision was made yesterday, after the Spondon-branded edible oil producer ceased production due to a prolonged factory shutdown.
As a result, the company’s share price fell by 4.35% to Tk33 per share on the DSE yesterday.
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The downgrade, effective from today, follows a directive from the Bangladesh Securities and Exchange Commission (BSEC), issued on 20 May 2024.
The DSE has also warned stock brokers and merchant bankers to refrain from providing loan facilities for the purchase of Emerald Oil securities, according to a disclosure on the stock exchange’s website.
On 24 November, the company’s shares were priced at Tk24.5 each. By 1 December, the price had increased to Tk34.5, despite the factory’s closure.
In response to an inquiry from the DSE regarding the unusual price hike, Emerald Oil stated that there was no undisclosed price-sensitive information influencing the recent surge in share price or trading volume.
Emerald Oil Industries previously informed the DSE that its operations were halted due to a severe gas supply shortage, which has disrupted the production process and left the company unable to operate at full capacity.
In another disclosure yesterday, the company confirmed that production at its factory has been halted since 1 January 2024, due to the ongoing gas supply issues, although the factory itself has not been closed.
Emerald Oil was acquired by Minori Bangladesh, a subsidiary of Japan’s Minori Co. Limited, in 2021.
The company resumed production later that year, following a six-year hiatus.
Established in 2008, Emerald Oil began producing Spondon-branded rice-bran oil in 2011 and was listed on the DSE in 2014.