Mehmood Equities takes charge of reviving Miracle Industries
Miracle’s share price closed 9.87% higher at Tk33.40 each on Monday as investors hoped for the company’s return to operation
After acquiring a 10% stake in Miracle Industries Ltd, a plastic packaging products exporter, Mehmood Equities Ltd took charge of resuming the operation of the listed company, which has been non-performing for the last two years.
In a disclosure on Monday, Miracle Industries informed that Mehmood Equities, the new owner, nominated three directors to its board and planned to invest the necessary funds for resuming operations on 30 September.
Riding on the development, Miracle's share price jumped over 9% as investors hoped for its return to operation. On Monday, its shares closed at Tk33.40 each, a 9.87% jump from the previous session at the Dhaka Stock Exchange (DSE).
Miracle Industries — founded in 1995 as a joint venture with state-owned Bangladesh Chemical Industries Corporation (BCIC) and four entrepreneurs — manufactures different types of bags for cement, fertiliser, salt, feed, sugar, food grains, and chemicals.
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It has two manufacturing units located in Sreepur and Gazipur. One unit is for the local market and the other is for manufacturing export products.
According to the company's original shareholders' agreement, Miracle has two groups of shareholders with the BCIC in Group A holding a 20% stake in the company and the four shareholders in Group B holding a 10% stake.
The four entrepreneurs — Asadur Rahman Mirza, Md Wahiduzzaman Chowdhury and Rafiqul Murshed and Pavarton Securities (owned by one of three entrepreneurs) had sold their entire stake to Mehmood Equities under a negotiated deal in July 2023.
After selling out the entire holdings in Miracle Industries, they have resigned from the board.
Then, Mehmood Equities nominated its chairman AKM Sahabub Alam as managing director of Miracle, and Showkat Mehmood and Nayan Mehmood as directors of the company.
When contacted, Sahabub Alam could not be reached over the phone. He did not even respond to a message sent by The Business Standard to his WhatsApp number.
At present, Miracle Industries' board has seven directors including a chairman nominated by the BCIC, TSP Complex Limited and Chhatak Cement Company as they hold 5.28%, 8.84% and 5.88% shares respectively.
It was a profitable company till the fiscal year 2018-19. In that year, its revenue was Tk60 crore and its net profit was Tk0.77 crore. According to its financials, Miracle earned the highest-ever revenue and profit in FY17.
But in FY20, it incurred a record loss of Tk12 crore and also witnessed a record fall in revenue by 85% to Tk9 crore due to a conflict that arose between Group A and Group B shareholders.
The company could not conduct its annual general meeting from FY20 and the company's production remained halted from 2022.
It exported products till FY19 and earned Tk23 crore that year. Since then, it could not earn from the export market.
Miracle Industries could not disclose any update about its business situation and financials after the July-March period of 2021.
Being listed on the stock exchange, Miracle had paid dividends to its shareholders, but after FY20, it did not pay any dividends.
