Acme Pesticides yet to respond to DSE query amid 66% share price surge

Acme Pesticides Limited has yet to respond to a query from the Dhaka Stock Exchange (DSE) regarding an "unusual" surge in its share price and trading volume, amid regulatory scrutiny over financial irregularities.

Infographics: TBS

According to the DSE, a formal query was sent to the company on 8 April following a rapid increase in its stock value. The company's share price stood at Tk16 on 1 March but climbed to Tk26.60 by the end of trading on 12 April—a 66% jump in less than six weeks. As of 12 April, the company had not provided any explanation for the movement.

This comes as the Bangladesh Securities and Exchange Commission (BSEC) is moving to recommend action against the company's top management. A BSEC inquiry report, set to be forwarded to the Anti-Corruption Commission (ACC), alleges that directors, officials and placement shareholders acquired shares worth Tk23.39 crore without actual payments being made.

The list of beneficiaries includes former National Board of Revenue (NBR) member Matiur Rahman, alongside various corporate and institutional investors. The regulator has named Chairman Shanta Sinha, Managing Director  Reza-Ur-Rahman Sinha and other officials in connection with the allocations.

As part of the action, the BSEC has decided to cancel the licence of the company's IPO issue manager, Shahjalal Equity Management. Auditors Shiraz Khan Basak & Co and Shafiq Basak & Co are also facing regulatory action for failing to present an accurate financial picture and for negligence in auditing the utilisation of IPO funds.