DSE to inspect Quest BDC’s operational and allied issues

The Dhaka Stock Exchange (DSE), with consent of the Bangladesh Securities and Exchange Commission (BSEC), is going to conduct an inspection into the operational status and allied issues of Quest BDC Limited, previously known as Padma Printers & Colour Ltd.

Padma Printers & Colour was a prominent entity listed on the Dhaka bourse before the 1980s. However, over the years, owing to the dwindling business of the paper and printing materials producer, it was sent to the over-the-counter (OTC) platform in 2009.

Recently, LR Global Bangladesh, an asset management company, acquired the sponsor-directors' stake in the Padma Printers with a plan to revive the non-performing company. The acquisition amounted to approximately Tk23 crore, with an additional injection of Tk50 crore aimed at revitalising the company's operations.

Following the change in ownership, Padma Printers was renamed to Quest BDC Limited last year, with plans to transition into the information and technology sector. 

After the ownership change, Quest BDC submitted an application to the exchange to list itself on the small and medium enterprises (SME) platform of the DSE earlier this year.

On 7 March, the DSE wrote to the commission seeking permission to conduct physical inspections of Quest BDC's operational and other issues as part of the listing procedure on the bourse.

On 24 March, the BSEC allowed DSE to visit and inspect Quest BDC's head office and factory premises. In its approval letter, the BSEC stated that the DSE has to submit a report within seven working days after completion of the inspection.

An official at the DSE said that following the commission's approval, a team was formed to conduct on-site inspections of Quest BDC's factory to assess its operational status.

LR Global acquired a 51% stake of Padma Printers & Colour Ltd, which was established in 1968, from its old sponsor-directors at a cost of Tk289.48 each, according to its annual report for fiscal year 2022-23. 

In September 2021, the BSEC had suspended the OTC board returning companies to a SME board, an alternative trading board, and some from the stock market. Along with the 28 companies of OTC, Padma Printers had to exit from the stock market.

In mid 2023, when LR Global showed interest to acquire it, the BSEC allowed the asset management company to acquire sponsor-directors' stake. According to a report of Quest BDC, LR Global managed six mutual funds and bought 8.16 lakh shares, which is equivalent to 51% of its total shares. 

The six mutual funds are DBH First Mutual Fund, Green Delta Mutual Fund, AIBL 1st Islamic Mutual Fund, MBL 1st Mutual Fund, LR Global Bangladesh Mutual Fund One and NCCBL Mutual Fund.

Earlier in May 2022, LR Global had acquired an 8.96% stake at Agni Systems Limited — a publicly-listed internet services provider.

What is the new plan?

Before transferring to the new owner and changing name to Quest BDC, the nature of business was printing, packaging, colouring varieties of books, periodicals, and paper items. 

Now, the new owner has decided to diversify the business into process outsourcing, software development, financial services, and other information technology based products, in addition to the printing and packaging business.

According to its reports, Quest BDC has Tk112 crore assets as of 30 June 2023, of which, non-current assets stands at Tk74 crore.

In FY23, the company earned Tk16 lakh revenue, and profit Tk37 lakh. Due to an increase in non-operating income, its net profit increased.