BSEC forms body to probe JMI’s share price hike
BSEC will also investigate the share transactions of the company
The stock market regulator has formed a two-member committee to enquire the reason behind the recent price hike of shares of the JMI Syringes and Medical Devices Ltd.
The Bangladesh Securities and Exchange Commission (BSEC) has already issued a letter in this regard.
JMI is the leading manufacturer of precision safety syringes and medical devices in Bangladesh.
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It has been producing essential medical devices through joint venture programmes since 1999.
BSEC Deputy Director Umme Salma and Assistant Director Muhammad Oarisul Hasan Rifat are members of the committee.
It will submit the report to the commission within 30 working days.
BSEC Executive Director and spokesman Mohammad Rezaul Karim said, "We want to investigate the reason behind the share price hike and share transactions of the company."
"It will also be scanned if any insider is trading illegally."
Sources said the company has exported 1.5 crore pieces of Syringes to Indonesia, which will be used at the time of vaccination for Covid-19.
Besides, JMI has received purchase orders from several countries, which is a normal phenomenon for the company, added the sources.
According to the regulator, it may occur when insiders trade the shares of a company.
It will investigate the company's share price hike for the interest of the investors.
On 10 December 2020, the share price of the company at the Dhaka Stock Exchange (DSE) was Tk282 each.
But on 30 December 2020, the company's share price rose to Tk427 per share, which is an increase by 51.42% within the just 14 working days.
When the DSE asked the company to explain the reason behind the price hike, it informed the stock exchange that there is no undisclosed price sensitive information.
In the last audited financial statement of FY2019-20, the net profit of the company was Tk9.60 crore.
The board of directors of the company recommended a 30% cash dividend for its shareholders.
In the July-September quarter of 2020, its net profit was Tk1.78 crore and earnings per share was Tk0.80.
JMI Syringes and Medical Devices was incorporated as a private limited company in April 1999 in Bangladesh and also as a joint venture enterprise with the Republic of Korea.
The company, which began commercial operation in January 2002, got listed on the stock exchange in 2013.
Sponsors and directors hold 79.65%, institutional investors 3.78% and general investors 16.57% shares of the company.
