Home ›› 30 Aug 2022 ›› Stock
Investors of Ring Shine Textiles Limited and Familytex (BD) Limited are yet to reap the benefits of securities regulator BSEC’s efforts to bring the inoperative companies back into production.
On January 27, 2021, Ring Shine’s board was restructured to revive the company shutdown in late 2020 due to continuous losses. And Familytex board was reconstituted in February, 28 of the same year for the same purpose.
News of Unique Group’s buying stake in Ring Shine had left a positive impact on its stocks. But now the group stepped back from its decision. During this period, many investors burned their fingers.
Some new board members of Familytex resigned as the current chairman of the company has allegedly not cooperated with them, sources said.
“We don’t want to delist any company. In the case of Ring Shine, we focus on two things: firstly, we’re trying to run the company in full swing. Secondly, if anyone expresses interest to take over the company, we’ll help transfer the ownership,” BSEC Commissioner Sheikh Shamsuddin Ahmed told The Business Post.
Many groups have already shown interest in taking over Ring Shine, according to him.
“I’m not aware of some new board member’s resignations from Familytex. But we’re making our efforts to bring the company back into operations,” said the BSEC commissioner.
Soon after the news of the board’s reshuffling, Ring Shine’s stocks soared to Tk 14.8, which fell to Tk 8.5 in May 2022. On Monday, its share remained unchanged at Tk 9.8 on the Dhaka Stock Exchange. The company made its stock market debut in 2019.
Similarly, Familytex shares rose to Tk 6.2 in August 2021 and declined to Tk 3.8 in May 2022. It remained unchanged at Tk 4.9 on Monday. It was listed in 2013.
Ring Shine’s new board member Sagir Hossain Khandkar, professor of finance at Jagannath University, told The Business Post, “Part of the money raised by the company from the IPO was spent to pay off debts. Still, it has debts.”
“Unite Group wanted to buy the company. But they are now reluctant to buy it. There was no headway in the company’s resuming production. Financial health remained the same as it was before,” he added.
The entire Tk 150 crore raised by the company through the IPO was kept in the bank. Of the figure, Tk 40 crore was used to pay the bank loans after taking the BSEC permission.
According to new board members of Familytex, its incumbent chairman was not cooperating with the new boards.
“We’ve resigned,” said a board member asking not to be named.
“Soon after joining the board, we asked the company to prepare the financial report, but it was not possible to do so even in the last year,” he said.
Earlier, the BSEC took similar steps for Emerald Oil and C&A Textile and succeeded as the two companies are in operation.
