Miracle Industries Ltd., a joint venture between the Bangladesh Chemical Industries Corporation (BCIC) and private investors, is under scrutiny for allegedly deceptive business practices, causing concern among shareholders. A recent inspection by the Bangladesh Securities and Exchange Commission (BSEC) revealed that a private company, Techno Economy Ltd., was operating within Miracle’s factory without prior public disclosure, violating BSEC rules.
Techno was using Miracle’s machinery and space for production, sales, and more, with Miracle covering all expenses. The BSEC recommends punitive measures and a special audit of Miracle’s activities for the past 10 years. Notably, Miracle Industries saw an 89% increase in its share price after announcing the plant’s reopening, but it failed to meet the production deadline. It has faced an ownership change this year, with four private stakeholders selling their entire shares to Mehmood Equities, which also owns a majority stake in Techno Economy. Miracle’s share price rose from Tk30.4 to Tk57.4 in the 16 working days following the announcement of the plant’s reopening, but it later fell to Tk39.3 as of October 23.
Source for more details:
