Home ›› 08 Jul 2022 ›› Stock
The Bangladesh Securities and Exchange Commission (BSEC) has requested the Bakhrabad Gas Distribution Company to restore gas connection to Meghna Condensed Milk Industries for the sake of investor interest.
Last week, it wrote to the managing director of the state-owned gas distribution company to re-connect the gas line to the company’s factory located at Cumilla’s Lalmai Upazila.
The company went out of production for a long time due to a gas disconnection, stopping its production and leading to its failure in paying any dividends to its shareholders, according to the stock regulator.
General investors make up 50 per cent of the company’s shares, it said.
The BSEC also sent the letter to the Chairman of Bakhrabad Gas Distribution Company, the Chairman of Petrobangla, and the senior secretary of the power division regarding the matter.
Meghna Condensed Milk that was engaged in the production and exportation of sweetened and non-sweetened condensed milk started operations in 1999 with the announcement of setting up the largest condensed milk plant in the country. It made its stock market debut on the stock market in 2001.
In April this year, the BSEC formed a committee to inquire into the financial performance of Meghna Condensed Milk Industries.
A four-member committee led by BSEC Joint Director Md Saiful Islam had been asked to submit the probe report within 30 working days.
Last year, the BSEC had instructed the companies to raise their paid-up capital to Tk 30 crore by June this year—a move seen by analysts as a boon for junk companies and a bane for good companies.
Earlier, a DSE inspection team had found that the factory of the company owned by Meghna Group of Industries KA Limited—one of the largest conglomerates in Bangladesh—benefiting its citizens through the world-class quality of consumer, remained inoperative.
The company released its financial statements and held annual general meetings regularly, but did not inform investors about the factory shutdown.
On Thursday, Meghna Condensed Milk Industries share prices declined 0.69 per cent to Tk 28.70 on the Dhaka Stock Exchange.
According to their financial statement ended on June 30, 2020, the company’s revenue was Tk 3.61 crore and its net loss was Tk 12.27 crore. As such, the auditor highlighted concerns about the companies’ future prospects.
