Beximco sheds Tk4,860cr market value in 6 days after floor price withdrawal
The flagship company of the Beximco Group saw its share price plunge 47% to Tk58.60 by Tuesday from the floor price of Tk110.10, which had remained in place for more than two years.
The market valuation of Beximco Limited has witnessed a catastrophic decline, losing around Tk4,860 crore in just six trading sessions following the withdrawal of its floor price.
The flagship company of the Beximco Group saw its share price plunge 47% to Tk58.60 by Tuesday from the floor price of Tk110.10, which had remained in place for more than two years.
The free-fall began after the Bangladesh Securities and Exchange Commission (BSEC) lifted the trading restriction on 9 June to restore market-based price discovery for major stocks, including Beximco and Islami Bank Bangladesh PLC.
Unlike Islami Bank, which recovered after a central bank-led board restructuring, Beximco has continued to hit the lower circuit breaker with virtually no buying interest.
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Market data reveals an extreme lack of liquidity for the scrip, as buyers have almost entirely shunned the stock. Despite crores of shares being placed for sale by panicked investors, only a meagre 77,327 shares changed hands during these six days.
Market analysts attribute the collapse in investor confidence to the severe crisis facing the group following the imprisonment of its vice chairman, Salman F Rahman, after the change in the Awami League-led government.
Industry sources suggest that the company's vast industrial operations have ground to a near halt, while several banks have initiated legal proceedings over massive loan defaults.
The company's outlook has been further clouded by regulatory and legal challenges. In late 2024, the BSEC appointed independent directors to Beximco Limited, Beximco Pharmaceuticals and Shinepukur Ceramics on instructions from the Financial Institutions Division. The move was challenged in the High Court, where the case remains pending.
Beximco has also failed to approve or publish financial statements since December 2024, raising concerns over transparency. Its latest available report for the first half of FY25 showed a loss per share of Tk3.78.
Meanwhile, the company remains under pressure from a court-backed move to place Beximco Group firms under receivership. Acting on a writ petition filed in September 2024, the High Court directed Bangladesh Bank to appoint a receiver and attach the group's assets.
The Appellate Division largely upheld the order in November 2024, exempting only Beximco Pharmaceuticals, to prevent asset dissipation and facilitate the recovery of allegedly laundered funds.
As of May 2026, general and institutional investors collectively hold more than 66% of the company's shares. With no financial updates, no dividends since a minor stock payout in 2024, and a share price that continues to hit the lower circuit breaker daily, investors see little hope for a near-term recovery.
Analysts warn that as long as the operational paralysis and legal disputes regarding the group's massive liabilities remain unresolved, Beximco Limited will continue to weigh heavily on the market's total capitalisation.
