Himadri decides to increase authorised capital by 25-time

Himadri Limited, a listed firm on the SME platform, finally decided to increase its authorised capital by 25 times after the company’s stock price soared 969 per cent in the past three months.

The SME firm, which operates six potato cold storage facilities in northern Bangladesh, has decided to increase its authorised capital to Tk 500 million from the existing Tk 20 million.

The company called an extraordinary general meeting on August 1 this year for shareholders’ approval. The record date is July 10, according to a regulatory filing with the Dhaka Stock Exchange on Monday.

Market operators said the company has decided to increase the authorised share capital before issuing new equity shares and increasing the paid-up capital as the number of shares is very low, which influences its stock price.

Currently, Himdari’s total number of shares is only 0.75 million, while more than 98 per cent are held by sponsor-directors.

Meanwhile, the little-known SME stock skyrocketed 969 per cent in just three months to Tk 377.30 on Monday, becoming the second most expensive stock on the platform.

Its stock price rise began after it got listed on the Chittagong Stock Exchange (CSE) in April this year. At the time, the stock price was Tk 35.30.

The abnormal price surge of Himadri has raised suspicion among market analysts of stock price manipulation as the number of shares in the company is very low.

The price surge also prompted the DSE to serve a show-cause notice asking the company if there was any reason behind the unexpected rally.

The company came up with a knee-jerk response, saying there was no such information, except that three directors sold a small number of their shares of the company through the CSE.

Himadri was one of the six companies to join the SME board on September 30, 2021, having transferred from the over-the-counter (OTC) market. Currently, 16 companies are listed on the platform.

Meanwhile, the company’s net profit increased 68 per cent year-on-year to Tk 37.95 million in July–December 2022.

Incorporated in 1974, it operates potato cold storage facilities in Rangpur, Bagura, Joypurhat, Thakurgaon, Gaibandha, and Dinajpur.

Share trading on the SME platform started on September 30 last year, creating an opportunity for small and medium enterprises (SMEs) with paid-up capital between Tk 30 million and Tk 50 million to raise capital from the primary market.

Source: The Financial Express

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