B Mirror Report: Fresh tensions have emerged in the stock market surrounding pharmaceutical and chemical sector company Asiatic Laboratories, amid allegations of irregularities tied to its rising share price.

The company disclosed price-sensitive information (PSI) about constructing a high-end 32-storey building, which is believed to have been aimed at inflating its share price. Market insiders suspect that placement shareholders intended to make large profits by selling their shares after the lock-in period expired.

The Bangladesh Securities and Exchange Commission (BSEC) took swift action after identifying the issue. According to the regulator, Asiatic Laboratories announced the PSI on September 28 last year without completing necessary steps such as project evaluation, feasibility studies, approval of the building plan from RAJUK, or environmental clearance. At that time, the company had also not utilized its IPO funds. BSEC believes the move was intended to offload placement shares at the expense of general investors.

To safeguard investors, BSEC extended the lock-in period for the company’s sponsors, directors, and placement shareholders by three years, until the construction and commercial use of the 32-storey building is completed. The decision reportedly angered market manipulators, leading to more aggressive activities.

Despite a broader market downturn influenced by the Middle East conflict, Asiatic’s share price has shown unusual movement. The stock was Tk 68.20 on February 17, dropped to Tk 57 within three trading days after BSEC’s intervention, and then surged to Tk 86.60 at the close of trading on Monday (April 6).

An investigation by the Dhaka Stock Exchange (DSE) found that the share price rose from Tk 44.40 on July 31 to Tk 52.20 on August 17 last year an increase of Tk 7.80 or 18 percent within 10 trading days without any clear reason.

Market experts have expressed concern, noting that the company’s pharmaceutical products are not widely available in Dhaka and alleging that it has been sustaining itself by reporting artificial profits.

For the 2025 financial year, the company declared a 10 percent cash dividend for general shareholders, equivalent to Tk 1 per share, with earnings per share (EPS) reported at Tk 2.09.