Beximco sheds by Tk7,706cr market value, investors face heavy losses

Infographics: TBS

Listed conglomerate Beximco Limited has seen its share price collapse in the wake of the Bangladesh Securities and Exchange Commission's (BSEC) decision to remove its long-standing floor price, dealing massive losses to investors and erasing thousands of crores of taka in market value.

The BSEC allowed the stock to resume normal trading on 9 June, ending an extended period during which it had been locked at a floor price. Since then, Beximco shares have nosedived 74.20% across just 13 trading sessions, gutting approximately Tk7,706 crore from its market capitalisation.

According to data from the Dhaka Stock Exchange (DSE), Beximco shares closed at Tk28.40 today (25 June), down from Tk110.10 before the floor price was lifted, a loss of Tk81.70 per share over the period.

Market analysts said the prolonged floor price had created a significant gap between the stock's artificially maintained value and its actual market demand. Once the restriction was removed, the market quickly adjusted to reflect the stock's perceived fair value, triggering sustained selling pressure.

Over the past 13 trading sessions, approximately 2.2 million shares changed hands, including nearly 2 million in the last four sessions alone. However, only around 330,000 shares were traded today. With sellers significantly outnumbering buyers, the stock has remained pinned near its daily lower limit.

The sharp fall has also triggered a dramatic erosion in the company's market capitalisation. Before the floor price was lifted, Beximco's market value stood at around Tk10,385 crore. It has since declined to approximately Tk2,678 crore, a loss of nearly Tk7,706 crore in under three weeks.

Market participants said shareholders have borne the brunt of the decline, particularly retail investors, who collectively hold more than one-third of the company's outstanding shares.

The sharp fall has also led to a dramatic erosion in the company's market capitalisation. Before the withdrawal of the floor price, Beximco's market value stood at around Tk10,385 crore. It has now declined to approximately Tk2,678 crore, resulting in a loss of nearly Tk7,706 crore in market value within less than three weeks.

Market participants said shareholders have been the biggest casualties of the decline, particularly retail investors who collectively hold more than one-third of the company's outstanding shares.

Selling pressure emerged immediately after the floor price was removed. Large volumes of sell orders entered the market, but a lack of buyers limited actual transactions and accelerated the price decline.

Senior officials of several brokerage houses told The Business Standard that many investors had been unable to sell their holdings for years while the stock remained under the floor price mechanism.

"Investors finally got the opportunity to exit after the floor price was lifted. However, the absence of buyers has caused the price to fall rapidly," said one brokerage executive.

Conversations with investors revealed that many are willing to accept significant losses simply to free up capital and redeploy it elsewhere.

Abu Asad, an investor, told TBS that while he can now sell his shares, the price has fallen so sharply that exiting means taking a substantial loss.

Many investors are reportedly willing to absorb heavy losses but remain unable to sell due to a lack of buying interest. Some have criticised the regulator for not lifting the floor price earlier, alongside other companies, arguing that market conditions were more favourable at the time and that the delay ultimately deepened losses for retail investors. The floor price mechanism was first introduced on 19 March 2020 to shield the stock market from the fallout of the Covid-19 pandemic. While the restriction was gradually lifted for most listed companies, Beximco and Islami Bank Bangladesh PLC remained subject to it for an extended period.

On 8 June, BSEC decided to remove the floor prices of both Beximco and Islami Bank, allowing their shares to trade freely from the following day. The regulator said the move was aimed at restoring normal price discovery and improving market liquidity.

However, Beximco immediately came under intense selling pressure, resulting in significant losses for investors.

Analysts attribute the decline to several factors, including prolonged uncertainty surrounding the company, concerns about its business operations, discussions regarding debt and financial liabilities, and the adjustment of a share price that had remained artificially fixed for years.

Despite the sharp decline, some investors see the situation as an opportunity. They argue that shareholders who had been trapped in the stock can now reallocate their investments elsewhere, though most retail investors have already suffered substantial capital losses.

According to the company's shareholding structure as of May 2026, sponsors and directors hold 33.11% of Beximco's shares, institutional investors 32.59%, foreign investors 0.94%, and general investors 33.36%.

With more than one-third of the company's shares in the hands of retail investors, the collapse in share price has directly affected a large number of small shareholders.

Listed on the stock market in 1995, Beximco is the flagship company of the Beximco Group, one of Bangladesh's largest business groups. The company has a paid-up capital of approximately Tk943 crore and around 94.32 crore outstanding shares. Its industrial facilities are located in Kashimpur, Gazipur.

Market observers said the stock's eventual stabilisation will depend on the company's future business prospects, financial restructuring efforts, investor confidence, and the return of buying interest.

According to them, Beximco is now undergoing a genuine price discovery process after years under the floor price regime. However, that adjustment has already erased thousands of crores of taka in market value and inflicted heavy losses on a vast number of investors.