BSEC to look into business activities of Miracle Industries
The firm has changed its office location or shut it down without the decision of the board and proper intimation to all stakeholders
The Bangladesh Securities and Exchange Commission (BSEC) has formed an inquiry committee to review the overall affairs of Miracle Industries Ltd.
The stock market regulator issued letters to its related parties in this regard on Sunday.
The members of the probe committee are BSEC Deputy Directors Md Rafiqunnabi and Mohammad Ratan Miah, and Dhaka Stock Exchange (DSE) Manager Snehasish Chakraborty.
Miracle Industries was founded in 1995. Its manufacturing units are located in Sreepur and Gazipur.
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The company manufactures different types of bags for cement, fertilizer, salt, feed, sugar, food grains, and chemicals.
Four directors of the company at a board meeting expressed their intention to transfer their entire holdings of 35,22,900 shares considering the dire financial and business condition of the company.
The directors wanted to transfer their holdings to Mehmood Equities Ltd, a private limited company registered with the Registrar of Joint Stock Companies.
The board of directors of the issuer company in its meeting instructed to complete the transferring process by 14 June 2021. But, it has come to the notice of the commission that the said transfer is yet to be completed.
The firm has changed its office location or shut it down without the decision of the board and proper intimation to all stakeholders.
The inquiry committee will complete the inquiry and submit a report to the commission within 30 working days.
Miracle Industries is a joint venture of the Bangladesh Chemical Industries Corporation (BCIC) and four individual shareholders.
It has been facing a working capital shortage for the last three years.
According to its original shareholder's agreement, Miracle has two groups of shareholders with the BCIC in group "A" holding a 20% stake of the company and four shareholders in group "B" holding a 10% stake.
However, the group "B" controls the company's management.
Miracle's board has seven shareholder directors. Among them, three are from the BCIC and the rest are from group "B".
Rafiqul Murshed, Wahiduzzaman Chowdhury, Asadur Rahman Mirza, and Pavarton Securities Ltd are the group "B" shareholders.
Rafiqul Murshed is also the managing director of the company.
For the last couple of years, there has been a conflict between the two groups of shareholders.
The company could not disclose any update about its business situation and financials after the July-March 2021 period.
For this reason, general investors are in the dark about the company.
The last DSE trading price of the company's shares was Tk27 each on Monday.
As of 30 November 2021, sponsors and directors jointly held 30%, and general investors 70% of the company's shares.
