STAR BUSINESS REPORT

The stock market regulator has permanently banned its former chairman Prof Shibli Rubayat Ul Islam, and LR Global Bangladesh CEO Reaz Islam from all capital market activities over their involvement in a share price manipulation scheme involving Padma Printers and Colour.

In 2022, asset management firm LR Global invested Tk 23.6 crore to acquire a 51 percent stake in Padma Printers, a delisted company, from six mutual funds it manages.

At the time, the company was shut down, and its net asset value per share stood at a negative Tk 2.74, according to a press release from the Bangladesh Securities and Exchange Commission (BSEC).

Despite this, LR Global paid Tk 289.4 per share, far above the face value of Tk 10. Just before the deal, Padma Printers shares were trading at Tk 13.60 each on the over-the-counter market.

After the purchase, Padma Printers was renamed Quest BDC Ltd, and its paid-up capital was raised from Tk 1.6 crore to Tk 50 crore. LR Global later injected another Tk 45 crore from the six mutual funds at Tk 15.88 per share.

During the process, no shares were issued to the company’s previous shareholders, the BSEC said.

It added that no price-sensitive information was disclosed, nor was any extraordinary general meeting held as required by regulations.