Metro Spinning share price jumps 57% in a month
The company says there is no undisclosed price sensitive information behind the share price increase
The price per share of Metro Spinning Limited – a cotton yarn manufacturer – soared by 57% to Tk38.8 on 25 August this year from Tk24.7 on 27 July.
The Dhaka Stock Exchange had asked the company to explain its unusual increase in stock price, to which it replied that there was no undisclosed price sensitive information behind the share price jump.
Metro Spinning Limited, a concern of Maksons Group, was established in 1993 and got listed on the stock exchanges in 2002.
The company produces 100% cotton yarn and white viscose.
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After absorbing the Covid-19 shock in fiscal 2019-20, its sales and profit bounced back in FY21.
In FY21, its profit stood at Tk6.09 crore, which was only Tk47.44 lakh in FY20.
Based on its earnings, the company declared a 5% stock dividend, which was subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC).
But the BSEC rejected the company's application for issuing 5% bonus shares to raise paid-up capital.
After the rejection, the company did not publish any information about the dividend for FY21, even after the end of another fiscal year in June 2022.
According to its financials, in the first nine months of FY22, the company's revenue increased to Tk72.87 crore from Tk67.12 crore in the same period of the previous fiscal.
And, its net profit after tax increased to Tk6.24 crore from Tk3.88 crore in the July to March period of FY21.
