Six companies listed on the SME platform of the Dhaka Stock Exchange (DSE) have reported significant albeit unusual hikes in their share’s prices.
The companies in question have experienced this unprecedented growth over the past six months [February-July] of 2024, piquing the interest and raising speculation among the investors and market analysts alike.
According to regulations made by the Bangladesh Securities and Exchange Commission (BSEC), if a listed company’s share prices rise due to improvements in its financial condition or from any announcements made in regards to setting up new ventures, then that information has to be regularly communicated to its investors on the DSE’s SME platform through DSE filings.
However, during the abovementioned period, no information was made available on the designated website explaining the sudden uptick in the share prices of these companies.
The companies in question: BD Paints Limited, Star Adhesives Limited, Agro Organica PLC, Craftsman Footwear and Accessories Limited, Web Coats PLC, and Oryza Agro Industries Ltd, have witnessed their shares’ unusual price hikes and volume increases.
The data
BD Paints Limited’s share prices soared from Tk 27.1 to a high of Tk 59.5 within the period, marking a staggering increase of Tk 32.4 or 54.45 per cent.
Although the company’s share prices have increased at a certain rate, they have not yet disclosed any information as to the reason for the increase on the SME board.
On April 12, BSEC allowed the company to raise Tk 12 crore through a Qualified Investor Offer (QIO) from the SME board of both the Dhaka and Chittagong stock exchanges of the country.
Established in 2014, BD Paints Ltd has issued 1.2 crore ordinary shares at the face value of Tk 10 each.
Next in line is Star Adhesives Limited, which saw its share prices climb from Tk 63.7 to Tk 79.3, an increase of Tk 15.6 within the months of February to July, representing a 19.67 per cent growth.
Star Adhesives was formed in 2013, and was listed on the SME platform of the bourses in 2022.
The company manufactures various types of adhesives, lubricants, lacquer, spray paint, and silicon, as well as brake oil and grease.
The manufacturer recommended a 12.5 per cent cash dividend to its shareholders for the fiscal year 2021-22.
Now comes Agro Organica PLC, another SME company which also made significant gains, with its share prices jumping from Tk 29.8 to Tk 49.6, a Tk 19.8 increase or 39.92 per cent growth.
As like BD Paints, Agro Organica’s share prices increased at a certain rate in the last six months, no information has been disclosed on the SME board explaining the price hikes.
Agro Organica started its journey in 2015 in the agro-business, consisting of agri-contract farming along with trading, processing and manufacturing for the consumers of the local and international markets.
Craftsman Footwear and Accessories Limited, another company in question, has shown a phenomenal increase in its share prices as the prices jumped from Tk 11 to Tk 40, a rise of Tk 29, which translates to a 72.5 per cent surge.
Earlier in 2017, the company, listed in May 2024, started operations as a shoe manufacturer for the export market with 35 employees and a small factory unit in Joina Bazar of Sreepur Upazila, Gazipur.
Web Coats PLC, listed in April of this year, demonstrated substantial growth as well, with its share prices increasing from Tk 11 to Tk 28, a rise of Tk 17 or a 60.71 per cent upsurge.
Web Coats is a 100 per cent export-oriented paper processing unit and the principal activities of the company are to carry on the business of manufacturing and exporting of all kinds of paper, boards and other related products by producing, processing and converting in its own plant.
The company was incorporated in 2013 and it started its commercial production since 2014.
Another company in question, Oryza Agro Industries Ltd, a significant player in the agribusiness sector, saw its share prices rise from Tk 18.3 to Tk 28.1. This Tk 9.8 increase represents a 34.88 per cent growth. Oryza Agro started its journey back in March 1, 2015.
The SME Platform
Both stock exchanges [DSE and CSE] introduced their SME platforms in the month of September of 2019 to attract businesses with small capital bases to the stock market and help them raise capital.
However, after a delay, in September 2021, the SME Board of the DSE made its debut by starting the trading process of six companies.
Following a High Court order, the Dhaka Stock Exchange implemented the minimum investment limit of Tk 30,00,000 for an investor to be eligible for trading on its SME Board from October 2023. Some 20 companies are listed in SME Platform.
