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Mia Mamun’s Minori Sparks Concern, Controversy & Allegations of Manipulation

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Mia Mamun's Minori Sparks Concern, Controversy & Allegations of Manipulation

A reputed Japanese conglomerate has appeared into the country’s stock market by acquiring shares in two prominent companies. Through share acquisitions, the well-known entity named Minori Bangladesh has gained ownership stakes in these two companies. Amidst a flurry of speculations, Mia Mamun Syndicate is orchestrating a surge in the share prices of both companies. The share value of one company has escalated from 8 to 182 taka.

Mirroring this pattern, the second company’s shares have fallen into the same cycle. A share, initially priced at 23 Taka, is being strategically acquired by common investors at 43 Taka, buying again at 25 Taka . Within the investing community, rumors and sensational tales are being weaved to manipulate the sentiment among general investors. Mia Mamun, a Bangladeshi expatriate in Japan, is the driving force behind Minori Bangladesh. Allegations have surfaced against him, suggesting orchestrated maneuvers to manipulate share prices across multiple companies.

Continuous waves of rumors are being used to inflate share values in the market, a concern raised by stakeholders within the industry. Mia Mamun is using Minori as Aladdin’s lamp in the stock market. Extensive research from Orthosongbad on Mia Mamun has revealed several facts about Mia Mamun.. Here is the first segment of an ongoing investigative report.

According to sources, the renowned Japanese entity, Minori Bangladesh Limited, has entered the country’s stock market as a major shareholder in two listed companies: Emerald Oil Industries and Fu-Wang Foods Limited. This inclusion of Minori Bangladesh Limited in the ownership of these two companies has led to a gradual increase in their share values. Among these, Emerald Oil Industries has undergone a significant change, including the liquidation of all its assets, including factories, to fulfill debts to Basic Bank.

Despite this situation of financial insolvency, the share prices of these companies are still allegedly being manipulated through continuous waves of rumors. A similar pattern is evident in the case of Fu-Wang Foods Limited, a company involved in the food and beverage sector.

It’s worth noting that Emerald Oil Industries Limited was listed on the stock market in 2014. In the same year, the company issued 20 million shares, raising a capital of 200 million Taka. The company successfully established its Spandan brand, engaging in rice bran oil production and marketing, stemming from paddy husks. However, just two years after being listed, the company faced financial distress due to the burden of loans from Basic Bank. Consequently, on June 27, 2016, its production ceased as a result of the ongoing litigation regarding the loan case against the backdrop of the loan scam at Basic Bank.

According to sources, Mia Mamun, the owner of Minori Bangladesh Limited, capitalized on the news of Emerald Oil Industries’ production halt and the shift in ownership. Starting from 2018, Mia Mamun had been strategically planning his involvement with shares of Emerald Oil Industries. Since then, he has consistently purchased the company’s shares at lower prices, leveraging his network of loyal associates.

In this scheme, Mia Mamun initiated the second phase by linking the Japanese company, Minori, with the ownership of Emerald Oil Industries. This information was purposefully disseminated in the stock market, resulting in an artificial increase in the company’s share value. Within a span of a few months, the share value of the company surged by nearly 200 percent due to orchestrated measures. According to market expertsAccording to market stakeholders, Mia Mamun came to the ownership of Emerald Oil Industries mainly to manipulate shares.

It has been reported that Basic Bank has been directed by a financial court to auction off the assets of Emerald Oil Industries. The bank, which had previously held an auction, has not found any buyers for the assets. As a result, according to legal provisions, the bank is preparing for a renewed auction. Furthermore, if the sale of Emerald Oil Industries’ assets cannot be executed, the bank will resort to confiscation.

Market insiders suggest that despite a lack of tangible assets in a company, manipulating the shares might be the sole motive behind its acquisition. They assert that the company’s shares have already been artificially inflated through various means associated with Minori’s involvement. This strategic manipulation has enabled Mia Mamun to gain significant financial gains. Consequently, this poses a risk to ordinary investors.

Interestingly, although Mia Mamun owns more than 8 percent of the company’s shares, he is not represented in the company’s board of directors. Mia Mamun claims that due to the tarnished CIB report on Emerald Oil Industries, he has not been invited to join the board.

By asking about this matter, Mia Mamun, told Orthosongbad that he has been involved since 2018 even though Minori came under the ownership of Emerald Oil in 2021. Basic Bank has filed a case in the Court of Debt. Mamun claimed he had spoken to the bank. He spoke to the bank about how to recover the assets of Emerald Oil.

However, Basic Bank denied these claims of Mia Mamun. The bank authorities told Orthosongbad that an attempt was made to meet with the current board of Emerald Oil, Mia Mamun, but no response was received.

Emerald Oil’s new board of directors has been repeatedly requested to move forward with debt repayment, a senior Basic Bank official told Orthosongbad on condition of anonymity. Presently, the administration has stipulated the suspension of interest payments and the application for restructuring. This procedural intricacy has triggered a legal impasse, prompting the bank to exercise its prerogative according to the institutional protocol, including sending multiple correspondences and proposals for settlement to the incumbent board and the managing director through formal channels.

Nevertheless, this gridlock has obstructed constructive cooperation from the current board, causing an unfortunate delay in resolving the issue. The complexity of legal entanglements has further hindered any potential redress, making the prospect of loan repayment improbable.

Mia Mamun claimed to Orthosongbad that he has opened a branch of the company in Tokyo, Japan called ‘Emerald Oil Japan’. He said, that due to the opening of branches in Japan, Emerald Oil can be easily sold to the businessmen of the country. In this case, the traders here (Japan) will be interested in buying the oil because Emerald Oil will take all the responsibility for the oil.

However, Mamun himself acknowledges that no assets of Emerald Oil will remain within his jurisdiction. In an interview with a reporter, he outlined his ambitious plan to close down all existing factories of Emerald Oil and initiate the establishment of new facilities in Jamalpur.

In a remarkable shift, after his involvement in a contentious takeover of Emerald Oil shares, Mia Mamun has shifted his focus to a new endeavor—Fu-Wang Foods. This development comes in the wake of ongoing speculations regarding the investment from the Japanese conglomerate Minori in Bangladesh. Notably, Mamun’s association with Fu-Wang Foods has also led to his appointment as the managing director of the company.

Prominent market analyst and professor, Abu Ahmed, has shed light on concerning trends in the stock market, told Orthosongbad by highlighting the speculative trading frenzy gripping certain companies, including Emerald Oil and Fu-Wang Foods. He expressed concern over individuals driven by ignorance and greed who are investing in these shares, often leading to a cycle of risky trading practices.

Ahmed emphasized that financially distressed companies like Emerald Oil are unlikely to attract substantial buyers. He cautioned against succumbing to rumors and urged investors to exercise caution when dealing with these shares, as they appear to be enticing regular investors into potentially hazardous investments.

Born in Nasirabad, Chattogram, Mia Mamun’s background traces back to his SSC from Agrabad Government High School in 1996 and HSC from City College in 1998. He ventured to Japan in 2000 to embark on his entrepreneurial journey under the name Minori. After completing his studies in 2008, he gained professional experience for three years before establishing his own company in Japan, Minori.

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Market Woes Drive Investors Away as Dhaka Bourse Sees Significant Decline

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By June 20 this year, approximately 102,000 beneficiary owners’ (BO) accounts were emptied, and market capitalization plummeted by Tk 1.37 lakh crore due to prolonged poor returns, frustrating investors and prompting them to exit the market.

Data from the Central Depository Bangladesh Limited (CDBL) reveals that in the six months leading up to June 20, the total number of BO accounts with zero share balance surged by 34% to 398,000, while BO accounts with share balances fell by 91,651 to 1.312 million.

During this period, the benchmark index DSEX of the Dhaka Stock Exchange (DSE) dropped over 1,000 points, closing at 5,244, while the blue-chip index DS30 fell by 218 points, settling at 1,875. The market capitalization at DSE also declined by over 17%, ending at Tk 6.43 lakh crore on June 20.

Rising interest rates, taxes on individual investors’ capital gains from listed securities, and a severe confidence crisis due to regulatory interventions are collectively impacting stock market performance, according to stockbrokers and market experts.

The capital market has been grappling with economic uncertainty, exacerbated by the Russia-Ukraine war. In response to the crisis, the Bangladesh Securities and Exchange Commission (BSEC) imposed a floor price in 2022 to prevent a freefall in share prices. Despite lifting the restriction after more than two years, the bearish trend persisted. Consequently, BSEC reintroduced protective measures, including reducing the circuit breaker limit from 10% to 3%.

Abu Ahmed, former economics professor at the University of Dhaka, explained that unprecedentedly high interest rates, especially on treasury bonds, have driven large investors to shift their funds from the stock market to bonds. “With treasury bond rates steady at around 12%, it’s a risk-free, preferred choice for many investors,” he said. This shift has resulted in a fund crisis in the market, he added.

Ahmed also highlighted a decline in the number of reputable companies entering the market and underperformance in key sectors like banks, insurance, non-bank financial institutions, and manufacturing companies. He pointed out that a lack of good governance and long-term policy support has eroded investor confidence. Additionally, the government is withdrawing previously granted investment benefits.

Md Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), stated in a June 11 press conference that factors such as the absence of high-quality initial public offerings (IPOs), governance issues among stakeholders, and the proposed capital gains tax are diminishing investor confidence. He urged the government to withdraw the capital gains tax, asserting that it exacerbates an already bleak market.

Finance Minister AH Mahmood Ali proposed a 15% tax on individual investors’ capital gains exceeding Tk 50 lakh from listed securities in the upcoming fiscal year budget, amid a market downturn. However, Abu Hena Md Rahmatul Muneem, chairman of the National Board of Revenue, argued in a post-budget press conference that taxation was not the root cause of the market’s issues, citing that long-standing tax incentives had not spurred market growth.

Despite these challenges, the benchmark index of the DSE has risen over the last four trading sessions, recovering 174 points to close at 5,244 last Thursday. Stockbrokers attribute this uptick to investor optimism about a potential rationalization of the capital gains tax proposal and a concessional salvage fund for the state-owned Investment Corporation of Bangladesh (ICB).

EBL Securities noted in their daily market commentary that rumors about the possible withdrawal of the proposed capital gains tax have instilled some confidence among cautious investors.

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Dhaka Bourse Skyrockets, Achieving 4-Day Gaining Streak

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Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 20th June, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.

452 crore 94 lakh taka shares were traded on this day. 206 crore 50 lakh more tradings were done in DSE today compared to the previous workday, June 19th, Shares worth Tk 246 crores 44 lakh shares were traded last time, Wednesday

The benchmark DSEX increased 82.74 points or 5,244 The Shariah-based index DSES added 24.78 points or 1,146, and the blue-chip index DS30 gained by 31.34 points or 1,875.

Of the issues traded, 288 advanced, 55 declined and 50 remained unchanged.

Linde Bangladesh Limited ranked top gainer on DSE, the share price increased by Tk 424.10 paisa or 43.04 percent. On this day, the share was last traded at Tk 1409.40 paisa.

Global Heavy Chemicals Limited ranked top loser on the DSE, the share price dropped by Tk 1.20 paisa or 3.00 percent. On this day, the share was last traded at Tk 38.90 paisa.

DSE topped on trade is Asiatic Laboratories Limited 14 crore 63 lakh takas of company shares have been traded.

A total of 45 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 71 lakh 39 thousand 978 shares of the companies were traded. The financial value of which is 113 crore 38 lakh taka.

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National Tea Sets New Subscription Date for Tk279.7cr Placement Shares

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National Tea Company Limited, a publicly traded entity, has announced new subscription dates for its Tk279.7 crore placement shares. Originally slated for nearly a year ago, the subscription had been postponed by regulatory authorities but is now set to proceed following a recent court directive.

According to the company’s disclosure, the subscription period will run from June 19 to August 19 during banking hours. This follows a letter from the Bangladesh Securities and Exchange Commission (BSEC) instructing the resumption of the capital-raising initiative, in compliance with a High Court order.

The primary objective of issuing these placement shares is to fuel business growth, finance working capital, and repay bank loans. However, due to a funding shortfall, the company has been unable to complete its modernization projects and other initiatives, resulting in decreased turnover caused by declining average sale prices in the auction market for its products.

Following the court’s directive, significant progress has been made in implementing the state-owned company’s plans.

In July of the previous year, Jakir Hossain Sarkar, a minor shareholder with just 10 National Tea shares, filed a writ petition with the High Court opposing the company’s scheme to issue fresh shares as approved by the BSEC, alleging unequal treatment of existing shareholders. The court later upheld the BSEC’s approval. Upon a petition by the market regulator, the Appellate Division’s chamber judge temporarily stayed the High Court’s order.

Shareholders have borne the brunt of these legal battles. After the record date, the price of National Tea shares dropped in anticipation of the increased number of shares, and the issuance of placement shares remained uncertain.

In April last year, National Tea received BSEC approval to raise its paid-up capital by issuing 2.34 crore shares at Tk119.53 each, inclusive of a Tk109.53 premium per share. The distribution plan allocated 1.24 crore shares to the government, Investment Corporation of Bangladesh, and Sadharan Bima Corporation at an average ratio of 4.43 new shares for each existing share. Sponsor-directors were allocated 13.8 lakh shares at a ratio of 3.21:1, and general shareholders were to receive nearly 96 lakh shares at a 2.85:1 ratio.

As of Wednesday, National Tea shares closed at Tk388.60 each on the Dhaka Stock Exchange. Founded in 1978 and listed on the capital market in 1979, National Tea cultivates, manufactures, and sells tea and rubber in the local market. The company’s average annual production is about 52 lakh kg of tea, most of which is sold through the Chattogram auction market.

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