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Orion Infusion Limited shares jumped as much as 56 per cent in the last eight trading sessions although the publicly traded company witnessed a 12.5 per cent slump in the first quarter of the current fiscal year (2022–23).
The company’s shares were rallying at a time when the Dhaka Stock Exchange (DSE) faced a massive slump in turnover with more than 70 per cent of issues remaining stuck at their floor prices.
The market witnessed a drought in participation as investors remained on the sidelines without investing in ailing stocks in fear of further losses.
Orion Infusion Limited revealed its first quarterly financial report on November 15 this year.
The listed firm’s profit, according to its Q1 financial report, fell by 12.5 per cent to Tk 1.28 crore in the July-September period of fiscal 2022–23, against the figure of Tk 1.46 crore during the same period last year.
So, it was apparent that the unsteady rise in stock prices of the publicly traded company was impertinent to its financial developments.
The company also did not publish any financial progress information after the disclosure of the Q1 report, according to the Dhaka Stock Exchange (DSE).
The board of directors of the company recommended a 10 per cent cash and 10 per cent stock dividend to the shareholders for the year ending June 2022.
In the market, there are rumors that the company offered stock dividends to lift its paid-up capital base to comply with the regulatory order.
Currently, its paid-up capital stands around Tk 20 crore which it needs to lift to Tk 30 crore by this year to comply with regulatory requirements.
Orion Infusion shares were traded at Tk 785 per share on November 15 on the DSE trading floor, the day when it released its first quarterly financial report.
Previously, the company’s share price had rocketed abnormally from Tk 129 to Tk 972 per share only in three months (August to October) this year.
Its shares then started to fall gradually and stood at Tk 487 per share on November 29.
But snapping the month-long falling trend, its rises started again to soar.
To this end, the DSE served the company a show-cause notice asking it to clarify why its shares were jumping defying the overall market trend, according to a DSE filing published Sunday.
When asked, in this regard, BSEC Executive Director and Spokesperson Mohammad Rezaul Karim told The Business Post that the share price of any company is determined based on the demand of investors and the supply of tradable shares.
The BSEC has no authority to influence any company’s shares. Instead, if any unusual price rise happens, the authorities concerned take action against the company, he added.
According to the listed company’s financial report, its total revenue stood at Tk 22.49 crore in the July-September period of fiscal 2022–23. Its earnings per share (EPS) for the Q1, FY23 stood at Tk 0.63 against Tk0.72 in the corresponding period of the last fiscal.
Its net asset value (NAV) per share stood at Tk 14.8 till September 2022 which was Tk 14.22 in June 2022.
Ferdous Jaman, company secretary of Orion Infusion Limited did not respond to phone calls for comment.
The company’s every share was traded between Tk 75 and Tk 972 in the last one year, according to DSE data.
