B Mirror Report : Motior Rahman, known in the stock market for placement scandals like the “Goat Incident,” leads a network that brings weak and unqualified companies to the stock market in exchange for placement shares worth millions, without paying any money. Previously, the Bangladesh Securities and Exchange Commission (BSEC) punished this network for acquiring shares of ACME Pesticides and Ring Shine without payment.
This network brought weak company Agro Organica to the market and obtained 1,075,000 placement shares without paying any money, valued at 1.75 crore BDT. Similarly, the company’s management issued millions of placement shares in the names of various fictitious entities. After listing, the company ceased all financial disclosures.
Motior Rahman’s network operates by acquiring placement shares of IPO-bound companies for free. They inflate financials of weak companies to bring them to the stock market, often using complicit auditors. In short, the network takes full responsibility for bringing a company to market and, in return, receives pre-IPO placement shares.
Agro Organica reached the market through Motior’s network, with exaggerated profits and assets. In exchange, Motior Rahman’s network obtained shares worth 1.75 crore BDT. Like ACME Pesticides, these shares were likely acquired without payment, which would be revealed upon investigation.
A director at the Dhaka Stock Exchange (DSE) told Media that Motior’s network manages entire IPO processes. They bring unqualified companies to the market by inflating their financials, in exchange for shares, which are also taken by company founders and directors. The previous Shibli Commission directly facilitated this, but now it is time to investigate these irregularities. All companies whose shares were acquired by Motior’s network must be investigated urgently.
Before filing its QIO application, Agro Organica artificially increased its paid-up capital. According to the company’s 21-page draft prospectus, the paid-up capital as of June 30, 2019, was less than 2.7 million BDT, which surged to over 38 crore BDT in the next fiscal year. Nearly 99.3% of this capital was issued in 2019–20, with directors and others also receiving placement shares. Subsequently, 5 crore BDT was raised through QIO.
Among the abnormal capital increase, Motior’s network acquired the following shares without payment: Motior Rahman 150,000; Afzalur Rahman 65,000; Hawa Nur Begum 500,000; Bengal Assets Holdings Ltd. 360,000—totaling 1,075,000 shares. Investigations revealed similar unpaid placement shares from ACME Pesticides, leading to the decision to send the report to the Anti-Corruption Commission (ACC) for action.
Additionally, Shahjalal Equity Management Ltd., the issue manager for ACME Pesticides, submitted false or inconsistent information in the prospectus, failing its duties, and its registration certificate is set to be revoked. The same merchant bank managed Agro Organica’s issue.
Agro Organica’s prospectus listed Granacher Ltd., Invotek Ltd., Synergy Trading Ltd., and R.K. Enterprise as institutional shareholders, totaling 3,372,250 shares worth 33.72 million BDT. Verification by Artha Banijya revealed that none of these entities exist at the addresses provided.
Since its 2023 listing, Agro Organica has stopped publishing financial statements, including for fiscal years 2023–24 and 2024–25. Attempts to contact company officials—including Director Shaheen, CFO Sharif, and Company Secretary Shahadat Hossain—were unsuccessful.
