Saiham Textile stock up 103% in 25 sessions as one unit sits idle
The BSEC has taken note of the unusual price and trading volume, while Saiham Textile says it has no undisclosed price-sensitive information to explain the surge.
Shares of Saiham Textile Mills have more than doubled in just 25 trading sessions, even as the company maintains it has no undisclosed price-sensitive information to explain the rally and despite one of its two production units remaining shut for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work.
Data from the Dhaka Stock Exchange (DSE) show that Saiham Textile shares closed at Tk18.80 on 26 July. By today (2 September), they had climbed to Tk38.20, gaining Tk19.40, or 103.19%.
The stock gained another Tk3.20, or 9.14%, today alone. A total of 7.13 million shares changed hands on the day, with trading activity also rising significantly in recent weeks.
Such an unusual movement of Shares of Saiham Textile Mills has attracted the attention of the Bangladesh Securities and Exchange Commission (BSEC).
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Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the regulator has taken note of the unusual price and trading volume.
"The matter has come to the BSEC's attention. We will examine why the price and trading volume are rising unusually. If any irregularities are found, action will be taken," he said.
The DSE sought an explanation from Saiham Textile on 6 August over the unusual movement in its share price and trading volume. In its response on 9 August, the company said it had no undisclosed price-sensitive information that could explain the surge.
The company had earlier given a similar response to the Chittagong Stock Exchange (CSE), denying any undisclosed price-sensitive information behind the unusual movement.
The sharp rise has come at a time when one of Saiham Textile's two production units is closed for BMRE.
The old spinning unit, established in 1993, was shut down on 1 June due to ageing machinery. According to the company, the old equipment had reduced production capacity, affected yarn quality and increased production costs.
Under the BMRE project, the company plans to sell the old machinery and install modern automated spindle machines. The factory building will also be renovated, followed by commissioning and trial production. The entire process was initially expected to take around 18 months.
Md Neyamat Ullah, company secretary of Saiham Textile, told TBS that the company had no information about the recent movement in its share price.
"We have no knowledge about the movement in the share price. There is also no undisclosed price-sensitive information at present," he said.
He added that although the shutdown was announced for around 18 months, the company was trying to complete the BMRE work earlier.
Saiham Textile has two production units. While the old spinning unit is closed, its melange unit, established through a rights share issue and commercially launched in 2013, remains operational.
Market participants said the unusual price and volume movement warrants regulatory scrutiny, particularly as one unit is closed and the company has denied having any undisclosed price-sensitive information. They said the regulator should examine whether any coordinated trading or manipulation is behind the sharp movement of the shares of Saiham Textile.
Meanwhile, the company's latest financial results do not show a major improvement that would independently explain the surge.
During July 2025-March 2026, Saiham Textile posted a net profit of around Tk4.59 crore, up about 7% from the same period a year earlier. Its earnings per share (EPS) rose to Tk0.51 from Tk0.47.
The company's net asset value (NAV) per share stood at Tk43.75 as of 30 June 2025. At Tk38.20, the stock was still trading below its NAV today.
Saiham Textile expects the BMRE project to improve production capacity and efficiency once the upgraded spinning unit resumes operations.
However, the financial benefits of the project have yet to materialise as the unit remains closed.
Against this backdrop, the 103% rise in the share price in just 25 trading sessions has raised questions among investors and market participants. The BSEC's decision to examine the unusual price and trading volume has placed the stock under closer regulatory scrutiny.
