Bourses to inspect delisted Al-Amin Chemical's operations

Infographic: TBS

Dhaka and Chattogram bourses are set to inspect the overall business activities of Al-Amin Chemical Industries — a delisted manufacturer of various chemicals, mainly thinner and varnish. 

Inspection teams from the stock exchanges will physically visit the company's head office and factory premises, and submit reports based on their findings to the Bangladesh Securities and Exchange Commission (BSEC) within 15 working days. 

The BSEC issued directives to the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in this regard on Sunday. 

Al-Amin Chemical was listed on the bourses in 2002. However, in 2009, it was shifted to the over-the-counter (OTC) market and has remained there since. Now, the company seeks to be shifted to the SME platform of the stock exchanges. 

For that, the company has to comply with the BSEC's time-to-time instructions about raising capital, collection of share money deposits and proper issuance of securities, and utilisation of the funds. 

Munshi Shofiuddin, managing director of the company, told The Business Standard, "Al-Amin Chemical's factory had remained closed for a long time. After acquiring the stake of the company's previous sponsor-directors, we resumed production a few months ago."

"We already invested a big portion as working capital to the company and plan to invest more gradually."

"We are getting a response from the government. Now, general investors will get returns from the company," he added.

Seeking anonymity, a BSEC official said the company had raised an additional Tk25 crore as paid-up capital by issuing new shares without the commission's approval, where it is imperative for any issuer company to take post-facto approval from the regulator. 

The DSE and CSE will review all of Al-Amin Chemical's activities keeping the securities laws in concern, the official added. 

This July, the DSE sought approval from the commission to visit Al-Amin's factory and head office to investigate its operational status and other issues for the interest of investors. 

The premier bourse then informed BSEC that the company decided to resume commercial operations from 11 May this year. 

In May 2022, cricketer Shakib Al Hasan through his firms Monarch Mart and Monarch Express, and associates acquired 48.175% shares of Al-Amin Chemical's sponsor-directors, out of which, Managing Director Munshi Shofiuddin bought 8.175% shares.

Al-Amin Chemical Industries was incorporated in 1990. Its factory is located in the Bangladesh Small and Cottage Industries Corporation (BSCIC) area in Kanaipur, Faridpur. It produces chemical fertiliser, battery water, drinking water, and softeners.

In the fiscal 2021-22, the company incurred a loss of Tk15 lakh, and its loss per share was Tk0.29. 

Sponsors and directors of the company hold 50% of shares, institutional investors 2.54% and the general public owns 47.46%.