Sellers hold onto the four OTC returnees
As investors were interested in all the four scrips at the current price level, referred to their latest prices at the OTC, and the sellers barely responded with their sell orders, each of the scrips closed at their ceiling price for the session on Sunday
Re-listed four companies – Bangladesh Monospool Paper Manufacturing Ltd, Paper Processing & Packaging Ltd, Tamijuddin Textile Mills Ltd and Monno Fabrics Ltd – saw a high demand for their stocks at the first session after their return to the main trading board from the over the counter (OTC).
As investors were interested in all the four scrips at the current price level, referred to their latest prices at the OTC, and the sellers barely responded with their sell orders, each of the scrips closed at their ceiling price for the session on Sunday.
Against 10% gains over the first session after re-listing, only three shares of Monospool, Paper Processing and Tamijuddin Textile Mills – one from each company – were traded on the day, while the number of Monno Fabrics stocks that changed hands stood at 1,501.
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The Bangladesh Securities and Exchange Commission (BSEC) in February this year allowed the four companies to come back to the main market and the Dhaka Stock Exchange (DSE) board approved their re-listing plan recently.
More than a decade ago, the BSEC had expelled a few dozens of underperforming or noncompliant companies, including the four that returned on Sunday, from the main trading boards of the bourses, and they found their way to hibernate at the unpopular off-exchange trading platform.
Some companies including Wata Chemicals and Sonali Paper previously returned to the main board through overcoming the weaknesses that had sent them to the OTC once.
Non-operating status, failure to convert the company shares into electronic format were the main reasons behind their landing at the OTC.
OTC board of the DSE now hosts 61 delisted scrips.
The fall and comeback
Bangladesh Monospool Paper Manufacturing Ltd and Paper Processing and Packaging Ltd, both are concerns of Magura Group, were listed on the market in 1989 and 1990, respectively.
Suffering bad days in business, the companies went off the trading board but now are doing better again.
Monospool Paper Manufacturing is a well-known paper producer that began exports in 1990.
On the other hand, Paper Processing and Packaging Ltd is a printing and publication house that has come through several modernisations in its facilities at Siddhirganj, Narayanganj. It aims to meet the growing demand for its products and services in the education and industrial sectors.
Its wide range of products includes exercise books, spiral pads, loose leaves, bound books, hardcover books, gift wrapping papers, envelopes, and shopping bags.
Tamijuddin Textile Mills Ltd was incorporated in 1970 and opened its letter of credit for machinery imports the same year but suffered disruption due to the Liberation War.
However, in independent Bangladesh, the company was nationalised in 1973 and later again was privatised in 1985.
Going through reforms and modernisation thrice in its facilities, the company survived well in the yarn production business and now is generating more than Tk240 crore in revenue a year.
Monno Fabrics Ltd began its journey in the 1990s and it is a complete composite textile mill.
Alongside other Monno flagship businesses including ceramics, engineering services, the mill suffered hardship for over more than a decade. In recent years, the next generation directors are trying to reorganise things within the Monno Group.
