The share price of Lovello Ice Cream – a brand of publicly listed Taufika Foods and Agro Industries Limited – has soared 42% in the last four trading days.
According to the Dhaka Stock Exchange (DSE) data, its share price soared from Tk33.6 on 30 December 2021 to Tk47.8 each on 5 January 2022 (Wednesday).
On Wednesday, its share price soared by 9.89% compared to the previous trading session.
The DSE recently sent a query to the company regarding the sharp rise in its share price.
In response to the query, Lovello said there is no undisclosed price sensitive information related to the unusual recent hike in its share price.
Taufika Foods and Agro Industries raised Tk30 crore by issuing three crore general shares at the face value of Tk10 in 2021.
Despite the lockdowns during the Covid-19 pandemic, the company posted a 7.6% growth in profit in FY21 compared to the previous fiscal year.
In its annual general meeting (AGM), the company announced an 11% cash dividend for the shareholders for FY21.
In the first quarter of the current fiscal year, the company's net profit rose by 8%. During the period, its earnings per share (EPS) rose to Tk0.40, which was Tk0.37 at the same time as the previous fiscal year.
Recently, the company said the shareholders have approved a rectification of the use of the initial public offering (IPO) proceeds regarding the acquisition of plant and machinery.
It said instead of purchasing the cone baking machine as mentioned in their prospectus, the company intends to procure a Rollo stick ice-cream machine and associated machinery to cope with the changing market demand. Besides, it also intends to increase its ice cream production capacity by a considerable volume.