The share price of Khulna Printing & Packaging Limited, a non-operational entity under the Lockpur Group, has surged by an astonishing 260% in two months following the return of the group’s owner, SM Amzad Hossain. Hossain, who also served as the former chairman of South Bangla Agriculture and Commerce Bank, had fled the country in 2021 amidst misappropriation of funds, despite an imposed travel ban by the Anti-Corruption Commission (ACC). After his return in October this year, Khulna Printing’s share price soared, reaching Tk33 apiece in early December. The Bangladesh Securities and Exchange Commission (BSEC) is investigating the unusual surge, with market insiders attributing the rise to rumors of ownership changes and the factory’s potential reopening.
In response to the surge, Mohammad Rezaul Karim, executive director of BSEC, stated that the commission has directed the Dhaka Stock Exchange to investigate and will take necessary action based on the findings. Rumors about changes in ownership and a possible reopening of the factory have contributed to the abnormal increase in share prices, while cautious investors show interest in small-cap stocks.
SM Amzad Hossain, the Chairman of Khulna Printing, clarified that the company had to cease operations due to frozen bank accounts, and efforts are underway to unfreeze accounts for group-wide operations. Following a court order, 933 bank accounts linked to Hossain were frozen on embezzlement charges, affecting operations across various companies.
Khulna Printing, which raised Tk40 crore from the stock market in 2014, has faced financial challenges, incurring losses for five consecutive years till the fiscal year 2021-22. Despite the recent surge in share prices, financial statements and ACC probes indicate concerns about the company’s true business situation.
