The board of directors of Ring Shine Textiles Ltd. has expressed doubts about the legitimacy of six businesses that plan to buy a combined 38% share in the business. The sale of shares was initially approved by the Bangladesh Securities and Exchange Commission. To avoid the burden of any potential issues upon the takeover, the board of Ring Shine Textiles has conveyed its concerns to the BSEC.
Wise Star Textile Mills Ltd. will hold 2% of the total shares, while the other five corporations will own the remaining 36%. 50% of Wise Star Textile’s shares belong to the company’s chairman, and the other 50% belong to the company’s current managing director.
Ring Shine, which raised Tk150 crore through a fixed-price IPO in 2019, faced challenges, including the sudden departures of Taiwanese sponsor-directors in January 2020, prompting BSEC to freeze its IPO fund account. Production halted in September 2020 due to COVID-19, driven by working capital shortfalls, declining orders, and raw material shortages.