Beximco leads turnover as investors pile into beaten-down shares

Beximco Limited topped the turnover chart on the Dhaka Stock Exchange (DSE) today (10 August) as investors actively traded the conglomerate's heavily battered shares following a steep price correction after the removal of the floor price.

The company's share price rose 9.68% to Tk27.20 today, with 2.04 crore shares changing hands. The transactions generated a turnover of Tk53.60 crore, the highest among all securities traded on the day.

Market insiders said the surge in trading was largely driven by investors seeking to accumulate Beximco shares after the stock suffered a sharp decline following the withdrawal of the floor price.

The floor price was lifted on 8 June. Since then, Beximco's share price plunged 81%, falling from Tk110.10 to Tk21.10 by 29 July. The sharp correction wiped out around Tk8,400 crore from the company's market capitalisation.

Following the prolonged decline, many investors, including institutional investors, have started buying the shares to lower their average acquisition costs and reduce losses, according to market insiders.

The heavy trading today indicates renewed investor interest in the stock despite the company's continuing operational, financial and regulatory challenges.

Beximco, listed on the stock market in 1995, is the flagship company of the Beximco Group, one of Bangladesh's largest business conglomerates. The company has a paid-up capital of around Tk943 crore and approximately 94.32 crore outstanding shares. 

The company's share price has come under sustained pressure amid a severe crisis surrounding the Beximco Group following the change of government. Market analysts have attributed the collapse in investor confidence to the imprisonment of group Vice Chairman Salman F Rahman.

Industry sources said the group's extensive industrial operations have slowed significantly, while several banks have initiated legal proceedings over loan defaults.

Beximco is also facing regulatory and legal challenges. In late 2024, the Bangladesh Securities and Exchange Commission appointed independent directors to Beximco Limited, Beximco Pharmaceuticals and Shinepukur Ceramics following instructions from the Financial Institutions Division. The move was challenged in the High Court, where the case remains pending.

The company has also failed to approve or publish financial statements since December 2024, raising concerns about its financial transparency. Its latest available report, covering the first half of FY25, showed a loss per share of Tk3.78.

Meanwhile, Beximco Group companies remain under pressure from a court-backed move to place them under receivership. Following a writ petition filed in September 2024, the High Court directed Bangladesh Bank to appoint a receiver and attach the group's assets.

The Appellate Division largely upheld the order in November 2024, exempting only Beximco Pharmaceuticals, with the move aimed at preventing asset dissipation and facilitating the recovery of allegedly laundered funds.