Dhaka, Bangladesh (BBN)-The Bangladesh Securities and Exchange Commission (BSEC) has formed a body to probe into unusual price hike of the shares of Hakkani Pulp & Paper.
The share price of the company rose 200 percent in the last 14 consecutive trading sessions, officials said.
The securities regulator formed the two-member body at a commission meeting on Monday after the Hakkani Pulp & Paper’s extraordinary share price hike came to light.
The probe body was asked to submit its report within next 30 working days.
Two BSEC deputy directors – Shamsur Rahman and Gholam Kibria – comprised the body.
The company’s shares’ price was Tk 20 on June 10 last.
Later, the price rose in 14 consecutive trading sessions and Wednesday the shares were traded at Tk 60, which is 200 per cent higher than the price observed on June 10 last, officials said.
On June 14 last, the company informed that its Board of Directors had approved the sanction of loan for Tk. 422.50 million from Social Islami Bank Limited, Agrabad Branch to implement the BMRE and Tissue project to produce Glossy, Offset and quality Tissue paper.
It was also mentioned in the corporate declaration posted on DSE website that the company’s ‘production capacity would be increased about 60 ton per day’.
The company’s Board of Directors recommended 5.0 percent cash dividend on other than Sponsors share (Public share) and 3.0 percent on Sponsors share for the year ended on June 30, 2014.