DSE asked to probe Khulna Printing’s unusual stock rally
The rally began after the group’s owner, who had fled the country two years ago, showed up last October
The securities regulator has asked the Dhaka Stock Exchange (DSE) to investigate an unusual surge in share prices of Khulna Printing and Packaging Limited (KPPL) this year.
In a letter to the country's premier bourse on Tuesday, the Bangladesh Securities and Exchange Commission (BSEC) said it found that KPPL shares climbed by 118.46% to Tk56.80 apiece from Tk26 on 5 February.
The commission views this jump as unusual in terms of share price and trading volume and has asked the DSE to submit its report to the regulator within seven working days.
A day after the move, the shares plunged by 8.95% to Tk47.80.
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On Sunday, the stock exchange found that the KPPL factory was closed. Despite the non-functionality, the share price had jumped by around 480% in the last three months.
The rally began after the group's owner, who had fled the country two years ago, showed up last October.
The shares, which were trading below the face value of Tk10 in the first week of October 2023, shot up to Tk33 in the first week of December. In the second phase, its share price crossed Tk50 recently, soaring to Tk56.80 on 5 February.
Khulna Printing's Chairman SM Amzad Hossain, who is also the former chairman of South Bangla Agriculture and Commerce (SBAC) Bank, escaped the country in 2001 even after the Anti-Corruption Commission (ACC) imposed a travel ban because he misappropriated funds.
Since his return last year, Khulna Printing's share price has been skyrocketing, despite the company being non-operational for the last three years.
On 4 February, SM Amzad Hossain told TBS that KPPL's operation has been closed for years, and there has been no progress in this regard till now.
He said the machinery used in the factory is usable, and it will be possible to start operations with this machinery at any time, adding, "We are trying to unfreeze bank accounts that were frozen years ago. We also made some progress, but it's not mentionable."
Earlier, he stated that the company was compelled to close down operations because its bank accounts were frozen. As the factory has been closed for three years, no employee except the security guard is working there.
Earlier, following a court order, the authorities froze 933 bank accounts linked to SM Amzad Hossain based on embezzlement charges against him, his wife, and his daughter.
Of these accounts, 740 were opened with SBAC Bank, according to sources. According to the ACC probe, Amzad embezzled nearly Tk80 crore through the accounts of his various companies.
