Orion Infusion has experienced a remarkable surge in its stock price, rising 46% in just one month to Tk 438 from Tk 299.2 on November 26, 2023. This unusual movement prompted the DSE to issue a show-cause notice to the company, inquiring about the reasons behind the surge.
Despite the notice, the stock price continued to climb, jumping an additional 6% on December 24. Analysts suggest that the surge may be linked to the company’s decision to issue rights shares, aiming to increase its paid-up capital to meet regulatory requirements. Orion Infusion’s board announced plans to issue one rights share against the existing two shares at Tk 20 each, including Tk 10 as a premium per share.
This move comes as the Bangladesh Securities and Exchange Commission (BSEC) urges small-cap companies to raise their paid-up capital to at least Tk 300 million. Investors are speculating on potential gains from the rights share issuance, driving the stock price higher.