The Bangladesh Securities and Exchange Commission (BSEC) has formed a committee to conduct an inquiry into the selling of 42.22 bighas of land by Ashraf Textile Mills Limited — an over-the-counter company — without disclosing that to general investors.
BSEC Additional Director, Md Ohidul Islam, will lead the committee consisting of other members, including Assistant Director Mahmudur Rahman, and senior DSE officials.
According to sources, the company sold the land in 2006 at a price of Tk85 crore to Karnaphuli Industries Ltd. It passed the agenda of land selling at an extraordinary general meeting (EGM) without notifying general investors.
Officials of the state-owned investment company, the Investment Corporation of Bangladesh (ICB), were also present at the meeting at that time.
In the same year, the company stopped production after selling the land and sold all the machinery at its factory.
Earlier, the BSEC asked the company for information on its factory and land.
BSEC sources say the company held a board meeting on 16 January 2006 and decided to sell the land and buildings and relocate the factory. Later, it took permission from shareholders at the EGM. Some 1,362 shareholders of the company were present at the meeting.
Currently, the company has paid-up capital of Tk10.5 crore, about 75% of which is owned by general shareholders.
In 1983, Ashraf Textile Mills was listed in the stock market. The pre-IPO paid-up capital of the company was only Tk40 lakh. The company increased it to Tk10.50 crore with an IPO, bonus and right shares. The total number of shares of the company is 1.05 crore.
Of this, 25.15% shares are held by entrepreneurs and managers, 1.14% by the government, 27.33% by institutional investors and 46.26% by general investors.
The latest price for each share of the company was Tk10.70 at the Dhaka Stock Exchange.