Lovello share manipulation: BSEC suspends debit transactions of 3 BO accounts

To protect the interests of general investors, the Bangladesh Securities and Exchange Commission (BSEC) has suspended debit transactions (sale) of three Beneficiary Owners' (BO) accounts over the continued share manipulation of Taufika Foods and Lovello Ice-Cream.

These BO accounts will remain suspended until 31 December 2025.

On Sunday (14 September), the regulator issued letters to the Dhaka Stock Exchange, the Chittagong Stock Exchange, and the Central Depository Bangladesh Limited (CDBL), instructing them to take immediate steps to implement the decision.

The three BO accounts belong to CBC Capital & Equity Management; Zhuang Lifeng, the chairman of CBC Capital & Equity Management; a full-fledged merchant bank, and Taufika Engineering, a sister concern of Taufika Foods and Lovello Ice-Cream, which held 7.25% (6,778,283 shares) of Lovello as of August 2025.

BSEC Director and spokesperson Abul Kalam told TBS that an investigation found evidence of manipulation involving the shares of Taufika Foods and Lovello Ice-Cream by these three BO accounts. BSEC is taking action against them. However, before the enforcement action is finalised, the commission has taken this measure to prevent these shares from being sold.

The investigation, conducted through the Dhaka Stock Exchange and covering transactions up to 30 June 2025, showed evidence of share manipulation by these three BO accounts. BSEC independently verified the findings and confirmed that manipulation is still ongoing, with a significant number of shares being transacted daily.

A BSEC official, speaking on condition of anonymity, said that while the accounts are involved in share manipulation, the exact type of manipulation has not yet been confirmed.

However, the account holders are allowed to buy shares of Taufika Foods and Lovello Ice-Cream, but they cannot sell them. Transactions of other shares held in these accounts will not be restricted. If the enforcement decision is implemented by November, the accounts will be reopened immediately thereafter, he said.

Today (16 September), the company's share price fell by 3.15% to Tk98.40 on the Dhaka Stock Exchange.

In January last year, the share price was Tk29.80, which rose by 257% to Tk106.40 within a few months. Additionally, in May this year, the share price increased from Tk78.30 to Tk108.50 within a few days.

A company official, speaking on condition of anonymity, said that the Central Depository Bangladesh Limited has already issued instructions regarding the matter.

In FY24, the company recommended a 10% cash and 10% stock dividend for its shareholders. In the previous fiscal year, it paid a 10% cash dividend.

The company achieved Tk99.21 crore in revenue in FY24, up from Tk94.37 crore the previous year. Its net profit stood at Tk12.18 crore, compared to Tk10.53 crore a year ago.

In FY24, Lovello's earnings per share (EPS) increased by 15.32% year-on-year to Tk1.43, and its net asset value (NAV) per share stood at Tk13.37 as of June 2024.

In September last year, the company announced an investment of Tk150 crore to set up a second ice cream manufacturing plant to boost production capacity. For the new plant, Lovello acquired 59.16 decimals of land adjacent to its existing plant in Bhaluka, Mymensingh.

Once operational, the new plant is expected to produce 2,50,000 litres of ice cream daily, doubling Lovello's current production capacity. The project is scheduled for completion by June 2025. Lovello plans to fund the investment through internal resources and bank financing, with further details expected during its upcoming earnings call.

In 2021, the firm raised Tk30 crore through an initial public offering (IPO) to expand its business. As of 31 August 2025, sponsors and directors held 38.66%, institutions 25.25%, and general investors 36.09% of the company's shares.

According to market insiders, the estimated market size of domestically organised branded ice cream in Bangladesh is around Tk1,400 crore, which could reach Tk2,600 crore by 2025.