New Ring Shine board to visit factory

The newly selected board of Ring Shine Textiles Ltd, listed with the bourse, will visit the factory in Gazipur Export Processing Zone this month.     

The decision was taken at the first board meeting since its formation Sunday. During the meeting, the company's audit and Nomination & Remuneration Committees were also reconstituted.

But with the Bangladesh Securities and Exchange Commission (BSEC) inquiry committee now looking into Ring Shine's previous private placements, the board did not reach any conclusion with regards to raising more than Tk270 crore capital through private placement.      

The probe committee is inquiring into Ring Shine Textiles Limited's raising of Tk275 crore via private placements prior to the initial public offering (IPO). The investigation is verifying where the fund ended up. 

Last week, BSEC asked the shareholders who had privately acquired Ring Shine's stocks to submit supporting documents, such as a copy of allotment letters, pay orders and bank deposit slips of the transactions.

Additionally, the commission has also sought the names and contact details of the banks where the funds were deposited against the Ring Shine shares. 

The commission probe committee decided to visit the factory prior to the visit of the new board. The company raised Tk150 crore capital in 2019 via IPO.         

With foreign orders canceled during the pandemic, the company announced a month-long shutdown of production on 27 October last year. After several extensions of the closure, Ring Shine failed to resume production.     

Taking investors' interest into consideration, on January 26, the regulator reconstituted the company board, comprised of former police officials, Dhaka University teachers, former bankers, and market professionals.      

The BSEC also sat with the newly selected board on 3 February to discuss production resumption, while the board met on their own Sunday.