Bangladesh Securities and Exchange Commission (BSEC) has decided to suspend the trading of Zeal Bangla Sugar Mills Ltd from Tuesday due to unusual transactions and movement of price in shares.
The commission has decided this, on Monday, for the interest of investors.
Sources said, the commission has recently observed unusual transactions and movement of price in shares of the company in the Dhaka Stock Exchange (DSE).
So, the commission has decided to suspend the trading of the company's shares in the interest of trading and investors until further order. This order will be effective from September 15, 2020.
On August 31, 2020, the commission directed the DSE for an inquiry into the company's unusual price hike.
In July 2020, the company's share price was Tk31.60 but the last trading price was Tk213, on Monday. In this perspective, the company's share price increased almost seven times.
The BSEC asked the DSE to submit a report within the next 20 working days.
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 March 31, 2020.
The company has not been able to pay any dividend to the shareholders for the last 29 years. As a result, the company's loss is getting heavier year after year.
Earlier this year, its auditors said the company was unlikely to make a profit. The auditor also said that the company needs support from the government to turn around.
The paid-up capital of the company is only Tk6 crore and it was listed on 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 13.93%, and general investors 35.07%.