Monospool Paper share prices soar abnormally
Its share prices rose by 291% to Tk215.5 each from Tk55 on 13 June
The Covid-19 pandemic put the paper industry into a crisis, but Monospool Paper Manufacturing Company's share prices saw an unusual leap in the last three months since June.
This happened after the company returned to the mainboard of the stock exchanges.
Its share prices rose by 291% to Tk215.5 each from Tk55 on 13 June, although revenue and profit declined significantly in the first nine months of the 2020-21 fiscal year.
The Dhaka Stock Exchange asked the company to explain the unusual increase in share prices, and the latter replied there was no undisclosed price sensitive information.
Keep updated, follow The Business Standard's Google news channel
The company returned from the over-the-counter (OTC) platform and was re-listed on the stock exchanges on 13 June this year, though it got listed back in 1989.
Due to weak fundamentals, it was sent to the OTC in 2009.
The capital market saw an upward trend in the last few months as investors injected fresh funds.
Share prices of some companies having low paid-up capital skyrocketed during this period, although their financials were very weak.
Monospool Paper, owned by Magura Group, has a paid-up capital of Tk3.29 crore.
Of its total shares, general investors hold 45.74%, sponsors and directors 53.83%, and institutional investors 0.43%.
Magura Group owns another listed paper company named Paper Processing and Packaging, which also returned to the mainboard from the OTC on the same day.
Profit, revenue fall
During the July-March period of FY21, Monospool Paper's sales decreased by 43%, and net profit dipped by 44%, compared to the same period of the previous year.
In this period, its sales revenue stood at Tk23.46 crore and profit at Tk0.92 crore.
On Monday, its share prices closed at Tk215.5 each.
According to its website, its market share is 30% in printing and publication and 70% is converted stationery products.
It manufactures ream papers, teleprinter rolls, computer papers, diaries, POS rolls, notebooks, and A4 papers.
The company said its business had been seriously affected by the closure of schools, colleges, and universities during Covid-19.
Due to this long-term closure and limited operations of government and private offices, the paper industry is passing a crucial time as both sales and revenue have fallen drastically.
