BSEC to look into Libra Infusions
The Bangladesh Securities and Exchange Commission (BSEC) has formed an inquiry committee to look into investor complaints against Libra Infusions Limited.
On Wednesday the commission issued letters to relevant parties in this regard.
BSEC Additional Director Mohammad Amdadul Hoque, Deputy Director Mohammad Ratan Miah, and Assistant Director Md Anwarul Azim, are the committee members.
The inquiry team will submit its findings within 30 working days.
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Libra Infusions, a manufacturer of intravenous fluids, widely known as IV Solution, started business in 1985. At the time, Libra's factory was built in Mirpur with the technical assistance of a company based in Switzerland.
In 2009, the company undertook a project to build a second unit at its Mirpur factory.
Last week, the firm finally began to disclose its financials that had been pending since mid-2019.
Predictably, it has had losses for the first nine months of fiscal 2019-20.
With a mix of small profits in the first three months and much bigger losses in the next six months, the company's loss per share stood at Tk5.24 for July 2019 to March 2020.
The unaudited losses appeared to have been much smaller than the loss per share of Tk18.07 for the same nine months of the previous 2018-19 fiscal year, when an extraordinary fourth quarter helped the firm save its annual bottom line, posting Tk1.05 in annual earnings per share (EPS).
However, since the decline in earnings, the company stopped disclosing financials though it continued operating.
The shares of the small-cap company with paid-up capital of only Tk1.5 crore is currently traded at over Tk950 each on the Dhaka Stock Exchange (DSE).
A senior analyst of an asset management company said due to low paid-up capital, the company's share price can easily be manipulated higher and its share price is manipulated two to three times a year.
He said in December-January, its share price rose 51% to Tk1,130 each.
In 2018, its business declined owing to disputes with its financier Al-Arafah Islami Bank Ltd, said Libra Infusions Company Secretary Md Shafiqul Islam Bhuyan, earlier.
The company built a second unit at its factory complex in the capital's Mirpur area, but due to the dispute with and no cooperation from the bank, its business was hurt back then, he said.
However, the dispute of Tk157.2 crore with the bank was settled by a Solenama made with the bank before the High Court, he said.
The business is running and the company will publish its annual financial results for fiscal year 2019-20 on Thursday, he added.
Investors will still be in the dark about fiscal year 2020-21 and 2021-22 financial updates.
