AFC Agro joins Active Fine Chemicals in production halt

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AFC Agro joins Active Fine Chemicals in production halt

The Dhaka Stock Exchange (DSE) has found production suspended at the factory of listed company AFC Agro Biotech, marking the second listed company under the same corporate group to have its manufacturing operations halted.

According to DSE sources, an inspection team visited AFC Agro Biotech’s factory on Thursday and confirmed that no production or regular operational activities were taking place. The company has yet to provide an official explanation for the suspension of operations.

The finding follows a similar inspection on June 25, when another DSE team confirmed that production had also been completely halted at the factory of Active Fine Chemicals, another listed company within the same group.

The closure of factories at both listed firms has raised fresh concerns among investors about the companies’ operational and financial conditions.

AFC Agro Biotech was listed on the stock exchange in 2014 and has a paid-up capital of Tk115.22 crore. Public investors hold 72.16% of its shares, while the company’s stock closed at Tk7.90 on Thursday.

Active Fine Chemicals, listed in 2010, has a paid-up capital of Tk239.94 crore. Public investors own 87.96% of its shares, and its share price stood at Tk7.30 on Thursday.

Market analysts said prolonged production shutdowns at listed companies can significantly affect earnings and financial stability while undermining investor confidence. They added that the issue is particularly concerning when a large proportion of shares are held by public investors, making regulatory oversight increasingly important.

 

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