The suspension order issued by the securities regulator would be effective from 15 October this year
The Bangladesh Securities and Exchange Commission (BSEC) has extended the suspension of share trading of Zeal Bangla Sugar Mills Ltd - a state-owned junk company - for 15 more days.
The suspension order issued by the securities regulator would be effective from 15 October this year.
Earlier on 14 September, the securities regulator suspended the company's share trading for 30 days on charges of unusual transactions and increasing of share prices in the Dhaka Stock Exchange (DSE).
On 31 August 2020, the commission directed the DSE for an inquiry into the unusual price hike of the company's shares.
BSEC asked DSE to submit the probe report within 20 working days, but DSE sought another 15 days for submitting the report.
Last July, the company's share price was Tk31.60 each which jumped to Tk213 before suspension of trading on 14 September, increasing by almost seven times in less than two months.
In the first nine months of the last financial year, the company's loss per share was Tk44.72 and net asset value per share was negative Tk652.49 as on 31 March 2020.
The company failed to pay any dividend to its shareholders for the last 29 years. As a result, the company's loss is getting heavier year after year.
According to its officials, production cost of Zeal Bangla's sugar is higher than the price of imported sugar. That is why the company is forced to sell its sugar at a discounted rate to survive in the market.
Earlier this year, Zeal Bangla's auditors apprehended that the company was unlikely to make any profit and said it needs support from the government to turn around.
The paid-up capital of the company is only Tk6 crore and it was listed with the capital market in 1988. The last dividend received by the shareholders from this company was in 1990.
The government holds 51% stake in the company, institutional investors 17.32%, and general investors 31.68%.