Imam Button Industries Ltd reported an unusual hike in its share price despite its insufficient sales orders and production halt since April because of the Covid-19 pandemic.
According to the Dhaka Stock Exchange (DSE), the company's share price increased by 100 percent over the last several trading sessions.
The Dhaka bourse sent a query letter to Imam Buttons in order to understand the reason behind such an unusual increase in its share price.
But Imam Buttons replied that its production has been halted.
After this announcement by the company, its share price decreased by 10 percent to Tk33.3 per share on Thursday at the DSE.
The company said that it was unable to earn sufficient revenue, for which it has been making losses since 2011. The company also said that it was unable to utilise its production capacity at a satisfactory level due to insufficient sales orders.
Imam Buttons is classified as a 'Z' category company at the DSE as it failed to regularly pay dividends to its shareholders.
Meanwhile, the company released its financial report for the January-March quarter of the 2019-20 financial year on Thursday morning.
The company reported a loss per share of Tk0.23 in this quarter.
At the end of three quarters of the last financial year, the total loss per share of the company stood at Tk0.51.
Market participants say that the doubling of the share price of such a company in a month is an expression of unusual behavior. Therefore, it can be assumed that this unusual increase in price has taken place through manipulation. The regulatory body should immediately find those involved in the abnormal price rise of such companies and take necessary steps to stop such manipulations.
Imam Button Industries Ltd is a Chattogram-based company that makes a variety of buttons for 100 percent export oriented RMG companies. Its factory is in the Fauzdarhat area of Chattogram city.
The company was listed with the DSE in 1996 and its paid up capital is Tk7.70 crore.
Out of its total shares, the sponsors and directors hold 29.33 percent, institutional investors 9.01 percent and general investors own 61.66 percent shares.