Khulna Printing shares surge 361% despite factory closure

Khulna Printing and Packaging Ltd (KPPL), a concern of the Lockpur Group, has witnessed an unusual 361% surge in its share price over the past 30 trading days, despite the company's operations being halted for more than three years, according to the Dhaka Stock Exchange (DSE).

However, the company has not responded for a second time to the DSE's query regarding the unusual price hike of its shares.

According to the disclosure, the DSE sent a query letter regarding the unusual hike in the price and volume of shares to the company on 2 February. As of Thursday, the company has not provided any response to the query.

On Tuesday, KPPL's share price reached Tk33.20 on the DSE, a sharp increase from its trading value of Tk7.20 on 23 December last year.

This sudden rise has raised eyebrows among market observers, especially given the lack of updates regarding the company's operations or financial performance since December 2022.

Market insiders have described the sudden rally as highly unusual, citing the absence of any significant announcements or developments that might justify such a movement.

This is not the first time KPPL's share price has experienced unexplained volatility. Between October 2023 and February 2024, the company's stock skyrocketed by 480%, reaching a peak of Tk56.80.

Nevertheless, the rally was short-lived, as prices eventually plummeted to Tk7 by December 2024.

The DSE had regularly warned investors about the company's non-operational status and factory closure by publishing updates on its website, but these updates ceased after August 2024.

Khulna Printing and Packaging Ltd's factory has remained closed for three years due to the freezing of the Lockpur Group's bank accounts by government authorities, KPPL Chairman SM Amzad Hossain told The Business Standard recently.

He added, "We are trying to unfreeze the bank accounts, but there has been no progress."