The Bangladesh Securities and Exchange Commission (BSEC) has extended the time for completion of assessing operational status and other issues of Emerald Oil Industries Limited — the producer of rice-bran oil, and listed firm on the stock market.
The commission formed a committee in the last week of October and asked it to submit the final report within one month. Now the regulator has extended the time for one more month until the last week of December to submit the report.
According to the BSEC, the committee will inspect factory premises and head office, books of accounts and records to oversee the current status of production and operation of Emerald Oil Industries.
Minori Bangladesh Limited, a subsidiary of Japanese farming company Minori Co Limited acquired Emerald Oil Industries Ltd in 2021.
Keep updated, follow The Business Standard’s Google news channel After taking over the ownership, with a fresh investment by the new owner, its operation had resumed in January 2022.
Its production had remained halted since 2017 due to a shortage of working capital following its founders’ loan scam, getting arrested, and finally fleeing the country.
The factory, located at Sheripara in Sherpur, is running in full swing but facing gas crisis for refining crude oil.
As a result, the Emerald Oil Industries in September had signed an agreement with Jamuna Edible Oil to increase the production of rice bran oil.
Under the agreement, Emerald Oil will refine crude oil at the Jamuna Edible Oil plant to produce oil. Half of the production will be exported to Japan.
After the deal, Emerald Oil will be able to process 800 tonnes of rice husk per day. The expected daily oil production will be 160 tonnes. Minori will provide working capital and use the Jamuna Oil plant.
Officials at the company said the inspection team had visited the factory recently, and they got the directive for time extension for another month for the assessment.
Afzal Hossain, managing director of Emerald Oil Industries, told the Business Standard, “The operation of the company is running fully, and we planned to increase production capacity using the factory of Jamuna Edible Oil.”
“Besides the Sherpur factory, the operation of a new venture for refining crude oil will start very soon. The trial run has already completed, and now will go for a full-fledged operation,” he added.
Volatile shares price
Owing to resuming operation after a long time, its shares price witnessed a sudden spike in April this year.
According to the Dhaka Stock Exchange (DSE), on 2 April, its shares price was Tk30.8 each. Since then, the share price gradually skyrocketed, and on 12 July reached at Tk182.5 each.
Reaching the peak, its shares price started to decline, and on Wednesday, its shares traded at TK83.3 each.
BSEC allows issuing 3.15cr ordinary shares
The BSEC has allowed issuing 3.15 crore ordinary shares at Tk10 each in favour of Minori Bangladesh against share money deposit.
The new owner injected around Tk31.15 crore fresh fund to resume operation of defunct Emerald Oil Industries as share money deposit.
Also, Minori Bangladesh bought about 46.66 lakh shares from the secondary market, which is 7.81% of the total stake in Emerald Oil.
The new owner was supposed to get shares of the old owners, but it did not happen.
So, the new owner applied to the BSEC for issuing new shares against share money deposit, and the BSEC allowed it.
The main sponsor of the company, Syed Hasibul Gani Galib, holds 21.41% shares, of which about 18% is mortgaged to banks, according to sources.
The company has a loan of around Tk100 crore with Bank Asia and BASIC Bank, which has been defaulted for a long time.
Incorporated in 2008, Emerald Oil Industries Ltd began production of its Spondon-branded rice-bran oil in 2011 and entered the bourses in 2014.
The company raised Tk20 crore by issuing two crore general shares at a face value of Tk10.
However, as soon as the founder’s loan scams became public, it melted down in both its business and the stock market, and turned inactive in 2017.
Source: tbsnews
