Nurani Dyeing shares soar on board reconstructing decision

The share price of Nurani Dyeing & Sweater Ltd rose 9.09% on Thursday on the news that the stock market regulator is going to reconstruct the board of the company.

The share price rose to Tk10.8 each, from Tk9.9 on Wednesday.

On 9 August, Dhaka Stock Exchange (DSE) said on its website that their officials had recently visited the factory premises and the head office and found both of them closed.

As a consequence of the disclosure, the share price dropped by 11% to Tk9.9 each, from Tk11.2 on Wednesday.

In a meeting on Wednesday, the Bangladesh Securities and Exchange Commission (BSEC) decided to reconstruct the board of the company.

The regulator also took the decision to take action against the auditor concerned after reviewing the consistency of the company's actual activities with the financial report of the previous years.

Nurani Dyeing, a 100% export-oriented yarn dyeing and sweater knitting industry, fell into crisis due to the Covid-19 pandemic within three years of getting listed on stock exchanges, and turned into a losing concern in fiscal 2019-2020.

In 2017, the company raised Tk43 crore capital from the stock market by issuing an initial public offering (IPO) for business expansion.

Since 2017, according to its financials, Nurani Dyeing's yearly revenue was more than Tk100 crore until fiscal 2018-2019.

But in FY20, its revenue declined to below Tk100 crore due to the adverse impact of the pandemic.

According to its financial statement, Nurani Dyeing's revenue decreased by 31% to Tk81.65 crore in FY20, from Tk118.66 crore in the previous year.

After that, the company continued suffering losses in the FY21. According to the data provided by the company to DSE, in the first nine months of that fiscal year, it incurred a loss of Tk3.43 crore while its loss per share stood at Tk0.28.

Its factory started commercial operation in 2009. The company has already closed its Dhaka office and shifted to Feni.