Written by The Banking Post
The Bangladesh Securities and Exchange Commission (BSEC) has rejected Magura Multiplex’s bid to issue new shares worth Tk 39.6 million to three of its sponsors in order to raise its paid-up capital.
The company sought to increase its capital from Tk 296 million to Tk 300 million, the minimum regulatory requirement set for listed firms. The proposal, submitted on July 21, aimed to issue the shares at face value of Tk 10 each—far below the company’s market price of Tk 114 on the Dhaka Stock Exchange.
According to the regulator, the company did not seek approval from its general shareholders, nor did it disclose price-sensitive information regarding the issuance. The BSEC also flagged “emphasis-of-matter” points in its audited financial statements.
“Thus the proposal has been declined by the securities regulator,” said the disclosure.
Magura Multiplex, formerly Paper Processing and Packaging, merged with non-listed Magura Paper Mills in March 2023 and was renamed. Despite strong earnings growth—profits rose 53 percent in FY24 to Tk 75 million, with a 14 percent cash dividend—the company has yet to comply with the minimum paid-up capital rule introduced in 2022 to curb stock price manipulation in small-cap companies.
A number of listed firms remain non-compliant with the rule, which was designed to reduce volatility in the secondary market.
