After making a big change on its board, Miracle Industries Limited, a publicly traded plastic packaging manufacturer, announced a plan last month that it would return to production by September 30.
The disclosure made investors upbeat about the problem-hit company because it has been out of production Since July 1 last year.
Since the update on August 21, the company’s shares started to become valuable, with its share price jumping by 56.28 per cent in 14 trading sessions till Monday, as per the DSE data.
After acquiring a 10 per cent stake, Mehmood Equities Ltd took charge of resuming the operation of Miracle Industries Ltd last month.
In a disclosure on August 21, Miracle Industries informed that Mehmood Equities, the new owner, nominated three directors to its board and planned to invest the necessary funds for resuming operations by September 30.
On August 21, the price of the company’s shares was Tk 33.40 each which rose to Tk 52.2 on Monday.
The Dhaka Stock Exchange (DSE), however, served the company a query asking for the reasons behind its stock price jump.
In response, the listed firm said there was no undisclosed price-sensitive information except for last month’s disclosure which could stimulate its stock price and increase the volume of traded shares.
Miracle Industries has two groups of shareholders, with the BCIC in Group A holding a 20 per cent ownership in the company and the four shareholders in Group B holding a 10 per cent stake, as per the original shareholders’ agreement.
However, Group B was controlling the company’s management and this group has been replaced by Mehmood Equities.
Mehmood Equities Limited nominated Dr AKM Sahabub Alam as Miracle Industries’ managing director; Showkat Mehmood as director; and Nayan Mehmood as director, the company said through the DSE disclosure.
Founded in 1995 as the Bangladesh Chemical Industries Corporation (BCIC)-Miracle Industries joint venture, the company used to produce and export a complete range of polypropylene woven sacks and value-added FIBCs (Flexible Intermediate Bulk Containers).
The company was listed on the Dhaka and Chittagong Stock Exchanges in 2000. Its manufacturing units are located at Sreepur in Gazipur district.
The company’s business lines include the manufacturing of different types of PP woven bags, liner bags with lamination, and FIBC/Jumbo bags for bagging cement, fertilizer, salt, feeds, sugar, food grains, and chemicals.
According to its latest annual report for 2017-18, Miracle Industries’ permanent workers were 454.
In the fiscal year 2017–2018, the listed firm had produced I7.3l lakh pieces of various types of bags of unit-l and 1.55 crore pieces of WPP bags of unit-2.
According to the Dhaka Stock Exchange data, the company has a paid-up capital of Tk35 crore, and belongs to the bourse’s category ‘B’.
Sponsor-directors held 30 per cent of the company’s total shares, while general investors owned 70 per cent as on May 31 this year.
The plastic packaging manufacturer paid only a 1 per cent cash dividend to its shareholders for the fiscal year 2019–20. In the last three fiscal years, the company had not published any financial statements.
In FY20, it incurred a loss of Tk13 crore and posted a loss per share of Tk 3.62.
