According to the directives of the Bangladesh Securities and Exchange Commission (BSEC), the controlling authority in Capital Market, Bangladesh, the company Bangladesh Monospool Paper Manufacturing Limited endeavors to raise its paid-up capital to a minimum of Tk300 crore. In compliance with this, the company has initiated the issuance of rights shares and has collaborated with supportive institutions for this purpose. Simultaneously, the minimum paid-up capital has been augmented to Tk300 crore. However, post this collaboration, the company’s share price has experienced a decline, decreasing by 36% from the date of becoming compliant on January 31st to February 19th. This information has been sourced from the Dhaka Stock Exchange (DSE).
According to sources, Bangladesh Monospool, an industrial establishment, obtained approval from the regulatory authority, the Bangladesh Securities and Exchange Commission (BSEC), for the merger with Pearl Paper and Board Mills Limited on January 31. Following the amalgamation, the share price of the company has been declining. On January 31, the share price was Tk237.50 paisa, and on February 19, it stood at Tk151.60 paisa. In just 14 days, the share price has decreased by Tk 85.90 paisa or 36.16%.
It is reported that during the 188th annual general meeting of BD Monospool on March 11 last year, the decision for the amalgamation with Pearl Paper and Board Mills Limited was approved. Following this decision, both companies applied for approval from BSEC and the High Court, with both institutions granting consent to the merger on January 31, as communicated to the Dhaka Stock Exchange.
According to DSE sources, Bangladesh Monospool engaged in trading activities in the spot market on February 14 and 15 for the amalgamation with Pearl Paper and Board Mills Limited. For this purpose, the company’s record was maintained on February 18. Subsequently, the share price of the company witnessed a decline of more than 31% within just one day after the record date. On February 18, the company’s share price was Tk220.90 paisa, while at the close of the market today, it stands at Tk151.60 paisa. In other words, within a single day, the share price has decreased by Tk69.30 paisa or 31.37%.
It’s noteworthy that Bangladesh Monospool Paper Manufacturing was listed on the Dhaka Stock Exchange in 1989. Due to a decline in business conditions, the company shifted from the main market to the OTC market. Approximately a decade later, around June 13, 2021, the company resumed trading in the main market. Following the issuance of 10% bonus shares by Monospool Paper, the paid-up capital stood at 10 crore 32 lakh 77 thousand 76 Taka. With BSEC’s approval to issue 2 crore 37 lakh 77 thousand 394 shares for amalgamation, the paid-up capital increased to 34 crore 10 lakh 50 thousand Taka. After the consolidation of shares between the two companies, the total share count for BD Monospool stands at 3 crore 41 lakh 5 thousand 101, of which 45% is held by investors and directors. Institutional investors hold 10.17%, and general investors own 44.83% of the total shares.
