The share price of Khulna Printing & Packaging Ltd (KPPL), a concern of the Lockpur Group, witnessed an abrupt share price rise by 113.53 per cent in the last ten working days, although the industry remained shut for around three years.
On Monday, its share price stood at Tk 56.80 on the Dhaka Stock Exchange (DSE), although they were traded below the face value of Tk 10 each in the first week of October 2023.
A DSE team has found that the KPPL factory closed after paying a visit to the industry premises to inspect their current operational status, according to a disclosure on the DSE website on Monday.
Shares of the company traded at Tk 56.80 on Monday, the highest price in the last month.
The company's share price has been rising through ups and downs since November 2023. But it has been increasing since January 23, 2024, when the price of each share was Tk 26.60.
When contacted at the number given on the company's website to know why the share price is increasing, he said, without disclosing his name, that he does not know anything about it.
The company last released financial statements for the first six months (July–December) of FY23 on January 31, 2023. No further financial disclosures have been made since then.
The company posted a loss per share of Tk 0.11 in the first six months of FY23, compared to a loss of Tk 2.99 in the same period last year.
Normally, when the share price of a company listed in the capital market increases abnormally, the DSE sends a letter to the company to find out the reason for the increase in the share price. And this is answered by the company.
In this case, despite the DSES inquiry, from 26 July 2023 to 31 January 2024, the company had received a letter from DSE seeking explanation regarding the increase in the share price, but it did not respond even once.
The DSE website mentions in this regard, this is for the information of all concerned that the DSE sent a query letter regarding the unusual hike in price of shares to Khulna Printing & Packaging Ltd on January 29 this year. However, the company has not provided any response as yet.
According to market investors, the chairman of the company, SM Amzad Hossain, has recently returned to the country after a long stay outside the country. And on top of that, the one-time manipulation company is driving up the stock price on rumours of a relaunch.
Amzad, also former chairman of South Bangla Agriculture and Commerce (SBAC) Bank, had fled the country in 2001 although a travel ban was imposed on him by the Anti-Corruption Commission (ACC) on charges of fund misappropriation.
In the wake of a court order, the authorities froze 933 bank accounts linked to Amzad Hossain and his companies on fund embezzlement charges against him, his wife, and daughter. Of these accounts, 740 were opened with the SBAC Bank, according to media reports.
According to the ACC probe, Amzad embezzled nearly Tk 80 crore through accounts of his various companies.
