All is well at Ring Shine Textiles
The return of Ring Shine Textiles’s managing director from Singapore yesterday did little to calm the nerves of investors as its stock price has continued to tumble.
Yesterday, shares of Ring Shine, which mainly produces textile, yarn and garments, ended the day 2.60 per cent lower than the previous day.
Rumours have been running rife over the past two weeks that the textile maker’s foreign staff, directors and MD were abandoning it and leaving the country for good.
This precipitated the slide of the stock, which made its debut just last month at Tk 15 and has more or less been on a downward spiral since.
The company raised Tk 150 crore from the stock market, as per the DSE.
The stocks reached its lowest ever at Tk 7 on January 21, two days after it became known that a bank that had given loans to the company had liquidation plans on cards.
The bank wrote a letter to Brac Bank, with which Ring Shine kept its initial public offering account, informing that it would go for legally liquidating the entity to recoup its investment if the rumours did turn out to be true.
The managing director will not return to Bangladesh and he does not want to run the factory, added the bank quoting the textile company’s chief financial officer (CFO).
However, Ring Shine claimed that it had no CFO of that name.
Brac Bank then wrote a letter to the stock market regulator to inform the matter and the regulator relayed it to the Bangladesh Bank.
Meanwhile, going round the company’s factory inside Dhaka Export Processing Zone (DEPZ) are two other rumours that the exit en masse had been prompted by either loan defaults or an anonymous death threat issued to the MD.
No such complaint was filed by the MD, said Javed Masud, inspector (investigation) of Ashulia Police Station. The workers are apprehensive of losing their jobs, he added.
MD Sung Wey Min returned to Dhaka yesterday and will join the factory today, said Nasir Uddin, a general manager of the company.
Ring Shine even held a board meeting yesterday when they announced earnings per share (EPS) of Tk 0.45 for the second quarter (October to December) of its 2019-20 financial year.
The MD usually goes to Singapore two to three times a month to spend time with his family and this latest trip was no exception, Uddin said.
The directors did leave the country following an internal misunderstanding but the factory is running as normal, said Md Abdus Sobhan, general manager of the DEPZ, on January 23.
“We have been contacting the directors of Ring Shine Textiles regularly. They have made their commitments to us to come back soon,” he said, adding that it would be within the next one or two weeks.
The directors are: Sung Jye Min, Hang Siew Lai, Hsiao Hai He, Sung Wen Li Angela, Sung Chung Yao, Sheao Yen Shin, Hsiao Liu Yi Chi and Chuk Kwan.
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