Home ›› 14 Dec 2021 ›› Stock
Meghna Pet Industries and Meghna Condensed Milk’s recent unusual share price movements and breaching securities rules came under regulatory scanner.
The Bangladesh Securities and Exchange Commission (BSEC) on Monday wrote to the Dhaka Stock Exchange and Chittagong Stock Exchange to
carry out a joint inspection to the factories and offices of the two companies owned by Meghna Group, one of the leading business conglomerates in the country.
The bourses were instructed to report back within the next seven working days to the regulator.
The instruction came on the heels of continuous violation of securities law by the two companies. In the process, the overall status and affairs of the companies will thoroughly be inspected.
The share prices of the two companies abnormally increased between August and October despite their poor financial health.
Meghna Pet’s share price, which was Tk 15 on August 2, jumped to Tk 36 on September 5 on the Dhaka bourse. Later, the price gradually came down and settled at Tk 23 on Monday.
On the other hand, Meghna Condensed share price soared to Tk 29 on September 2 from Tk 14 recorded on August 3. Its share closed at Tk 16 on Monday.
Earlier, an independent audit found huge inconsistencies in the Meghna Pet Industries’ annual financial statements for fiscal 2020-21. The auditors even feared that the company, which has long been out of production, would not be able to return to production soon.
“The previous years’ losses indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern,” the auditors said in their qualified opinion.
