43 eligible investors to face music
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
SUNDAY, MAY 22, 2022
SUNDAY, MAY 22, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
43 eligible investors to face music

Stocks

TBS Report
31 December, 2020, 09:20 pm
Last modified: 31 December, 2020, 09:23 pm

Related News

  • Midland Bank files for Tk70 crore IPO
  • S Korea lifts outdoor mask mandate, incoming gov't concerned
  • Sonali Paper gets BSEC nod to issue rights shares
  • BSEC suspends 15 authorised traders for aggressive selling 
  • An economist’s warning for stock market investors

43 eligible investors to face music

BSEC noticed an unbelievably huge gap between prices offered by the highest and the lowest bidders

TBS Report
31 December, 2020, 09:20 pm
Last modified: 31 December, 2020, 09:23 pm
43 eligible investors to face music

The stock market regulator has imposed restrictions on the eligible investors who bid 100% higher than their cut-off prices in the last five initial public offerings in the book building method.

The companies in the investor category are Walton Hi-Tech Industries Ltd, Energypac Power Generation Ltd, Mir Akhter Hossain Ltd, Lub rref (Bangladesh) Ltd and Index Agro Industries Limited.

The Bangladesh Securities and Exchange Commission (BSEC) took the decision at a meeting on Thursday.

According to the decision, the eligible investors, who bid 200% above their cut-off prices, will not be able to participate as eligible investors in the next three initial public offerings in the book building method.

On the other hand, those, who bid 150% to 200% above their cut-off prices, will not be able to take part in the next two initial public offerings while those who bid 100% to 150% above their cut-off prices will be away from partaking in the next one initial public offering.

Sources said 43 eligible investors bid 100% higher than their cut-off prices in the last five initial public offerings in the book building method.

The commission noticed an unbelievably huge gap between prices offered by the highest and the lowest bidders.

Sometimes, they do not follow the regulations when it comes to evaluating their company shares, sources said, adding that as a result, their actual cut-off price is not determined, and the recent issues bear the testimony to that.

Besides, general investors are being deprived of actual valuation of the shares of the companies.  

Earlier, the commission summoned the top five bidders among the eligible investors to know the analysis method of their bidding.

Every eligible investor took part in the analysis of their financial statements, business policy, future growth, management governance and overall condition of their companies.

As per the regulator's directive, the eligible investors have to form a bidding recommendation committee comprising at least two members having relevant knowledge, skill, qualification and experience.

After a detailed analysis of the value and prospects of the securities, the committee has to recommend the investor to participate in the electronic bidding. It will also mention the bidding quantity and price.

During its analysis, the committee has to take into account all aspects, including financial, technical, managerial, commercial, economic and ownership issues.

Besides, it has to use international securities valuation techniques to make decisions on objective and professional judgments.

The cut-off price of Walton Hi-Tech Industries share had been set at Tk315 through electronic bidding, but the prices of the highest and the lowest bidders were Tk765 and Tk12 respectively.

In addition, the cut-off price of Mir Akhter Hossain's shares were determined at Tk60, but the highest and the lowest bidders were Tk98 and Tk14 respectively.

It is alleged that the eligible investors manipulated bidding prices in connivance with the management.

Economy / Top News

investors / Bangladesh Securities and Exchange Commission (BSEC) / IPO / restrictions

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: Collected
    BB cancels foreign trips of private banks, NBFI employees
  • File Photo. Reuters
    Banks to give more 4% interest loans for import substitution crops
  • Photographer: Victor J. Blue/Bloomberg
    Global business is enduring a synchronised slowdown

MOST VIEWED

  • BSEC extends margin loan limit to curb massive fall
    BSEC extends margin loan limit to curb massive fall
  • Stocks' bearish run extends to seventh day
    Stocks' bearish run extends to seventh day
  • Photo: TBS
    37,000 BO account holders sell all shares in 11 days
  • File photo of Grameenphone HQ. Picture: Collected
    Grameenphone: A listed company leading by example
  • Photo: Collected
    S Alam Steels share soars amid bearish market
  • People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, US, 19 March, 2021. PHOTO: REUTERS/Brendan McDermid/File Photo
    Wall Street ends mixed after punishing week

Related News

  • Midland Bank files for Tk70 crore IPO
  • S Korea lifts outdoor mask mandate, incoming gov't concerned
  • Sonali Paper gets BSEC nod to issue rights shares
  • BSEC suspends 15 authorised traders for aggressive selling 
  • An economist’s warning for stock market investors

Features

Why everybody wants to be like TikTok

Why everybody wants to be like TikTok

6h | Panorama
Illustration: TBS

How the ban on porn sites spawned a local cybersex industry

8h | Panorama
3 best affordable sunscreens for all

3 best affordable sunscreens for all

9h | Mode
Warah uses three types of khadi material: a sheer and light one, a medium count and a thicker one.

Warah: Embroidered with culture and womanhood

11h | Mode

More Videos from TBS

Padma’s Char now largest grazing-ground

Padma’s Char now largest grazing-ground

19m | Videos
Currency depreciation against dollar price hike

Currency depreciation against dollar price hike

19m | Videos
Pran plans to invest in agri sector abroad to keep country's commodity market stable

Pran plans to invest in agri sector abroad to keep country's commodity market stable

24m | Videos
CV or Resume: Which one to create for job application

CV or Resume: Which one to create for job application

10h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
The story of Bangladesh becoming a major bicycle exporter
Industry

The story of Bangladesh becoming a major bicycle exporter

4
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

5
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

6
The reception is a volumetric box-shaped room that has two glass walls on both the front and back ends and the other two walls are adorned with interior plants, wood and aluminium screens. Photo: Noor-A-Alam
Habitat

The United House: Living and working inside nature

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab