B Mirror Report : Baraka Patenga Power’s share price dropped below its issue price less than eight months after the company went public.

But after four years, the company’s share price is about to drop below its face value, despite the fact that it has been in bad business since IPO.

Since its listing, Baraka Patenga has been in a continuous downward trend. The company, which issued shares at a premium, faced losses as early as its second financial year after listing.

Baraka Patenga entered the stock market with a net profit of Tk 641.8 million, earning Tk 3.71 per share, in the 2020–21 financial year.

However, in the very financial year when trading of its shares began (15 July 2021), profits dropped to one-third of the previous level. In the 2021–22 financial year, the company’s net profit declined to Tk 215.3 million. This further deteriorated in the 2022–23 financial year, when the company incurred a net loss of Tk 183.6 million.

Subsequently, in the 2023–24 financial year, the company made a net profit of Tk 59.8 million, or Tk 0.35 per share. Most recently, in the 2024–25 financial year, it posted a net profit of Tk 237.5 million, or Tk 1.37 per share. Against this performance, the company’s board declared a 2 percent cash dividend, equivalent to Tk 0.20 per share.

Baraka Patenga Power, which was listed on the stock market in 2021, has a paid-up capital of Tk 1.73 billion. Of this, 64.24 percent is held by investors from various market categories (excluding sponsors and directors). On Monday (28 December), the company’s share price stood at Tk 14.60.

In contrast, the company’s cut-off price was Tk 32, a level below which the share price fell within less than eight months of the start of trading. The share first dropped below the cut-off price on 6 March 2022. For several months, the stock remained stuck at a floor price of Tk 29.30. After the floor price was withdrawn, the share price fell close to its face value, reaching Tk 10.10 in November 2024.

Even so, the sponsors and directors of the company despite weak investor demand were not satisfied with the Tk 32 cut-off price. Due to stricter regulations imposed by the Bangladesh Securities and Exchange Commission (BSEC) in determining cut-off prices under the book-building method, the company’s cut-off price was capped at Tk 32. Otherwise, it is unimaginable how far manipulators operating under the guise of “eligible investors” might have driven the price, as they have done in many previous cases.

Baraka Patenga Power raised Tk 2.25 billion from the capital market by issuing shares at an average price of Tk 30.50 per share. Since shares were issued to general investors at Tk 29, the overall average issue price came down to Tk 30.50. From this issue-priced investment, shareholders received Tk 0.20 per share in the 2024–25 financial year. That means a return of Tk 0.20, or just 0.66 percent, against an investment of Tk 30.50 per share whereas a risk-free bank fixed deposit (FDR) would have yielded 15 to 17 times more.