The biggest stock market manipulation in the capital market took place in Himadri Limited, listed in the SME sector. Its share price with a face value of Tk 10 had once risen to about Tk 9,000 through manipulation.
The paid-up capital of this small-cap company is only Tk 2.63 crore. Recently, the company authorities took the initiative to double this capital in one fell swoop. For this purpose, a 100 per cent stock dividend was announced.
However, Bangladesh Securities and Exchange Commission (BSEC), the regulatory authorities of the stock market has disagreed with this decision. As a result, the paid-up capital of this company, which undergone the highest manipulation in the history of capital market, is not increasing.
BSEC said it is not possible to increase the paid-up capital through the company's proposed stock dividend in the current situation. In addition, the commission has expressed concern over the company's unrealized assets, tax liabilities and capital reserves based on audited financial report for 2024-25.
For these reasons, the regulatory body has disapproved this large stock dividend. The company authorities have recommended a 100 per cent stock dividend as well as a 5 percent cash dividend for 2024-25.
The company's earnings per share (EPS) in the current fiscal year was Tk 3.81 paisa. It was Tk 3.42 paisa in the previous fiscal. The company's net asset value (NAV) per share increased to Tk 522.87 paisa at the end of June 30. It was Tk 522.19 paisa at the end of the previous fiscal year.
This share has experienced the highest price increase in case of any share with a face value of Tk 10 in the history of the capital market. The price of the share was increased in stages through manipulation, and at one point the price was taken to Tk 8,941.
The BSEC had fined one person and three institutions Tk 1.70 crore for being involved in the manipulation when the manipulators made a profit of Tk 82 crore at that time.
