BIFC stock jumps 55%, reasons unclear

Bangladesh Industrial Finance Company's (BIFC) share price surged 55% within 11 working days, despite the company's severe financial struggles and no apparent justification for this unusual rise.

According to Dhaka Stock Exchange (DSE) data, BIFC's share price was Tk7.1 on 26 September 2024. Over the next 11 working days, it climbed 55% to Tk11 before closing at Tk10.40 on Wednesday (16 October). 

Despite this sharp increase, no new information or significant developments justify the rise in share price and trading volume.

The DSE sought an explanation for the unusual price movement. In response, BIFC's Company Secretary, Md Ahsan Ullah, confirmed that there was no undisclosed price-sensitive information to account for the recent surge, as reported on the DSE website.

BIFC has faced severe working capital shortages for several years, raising employee concerns about salary payments, an official of the company told TBS, on condition of anonymity. 

The company now operates with only 10 to 12 employees and lacks key positions such as a Chief Financial Officer (CFO) and accounts personnel, preventing it from completing its financial accounts for the previous year, the official added.

When contacted, Ahsan Ullah told TBS that the company's accumulated losses continue to grow each year, and there has been no change in its business activities. 

The company has only published its financial disclosure up to September 2023.

BIFC is a joint-venture leasing and financing company, established by a group of foreign and local sponsors. However, it has faced significant setbacks. 

In December 2022, a high-level fact-finding report from the Bangladesh Bank, submitted to the High Court, revealed that its former chairman, Major (retd) Abdul Mannan, embezzled Tk517.63 crore through anonymous loans.

Currently, BIFC's liabilities exceed its total assets, making the recovery of dues to the company's creditors and depositors highly uncertain.