The Bangladesh Securities and Exchange Commission (BSEC) is looking into the unusual rise in the share price and trading volume of Saiham Textile Mills PLC amid allegations that a group may have artificially pushed up the stock price by spreading rumours.

The company’s spinning unit has been closed since June 1, 2026, due to prolonged production challenges, including the manufacture of low-quality yarn. Despite the shutdown, the company’s share price has surged significantly in recent months.

The stock price rose from Tk 16.70 on May 20 to Tk 38.20 on September 2, marking an increase of more than 128 percent over 69 trading sessions.

According to the company, its board decided at a meeting on May 10 to suspend production at the spinning unit for around 18 months. During this period, the factory building will be reconstructed and modern automated spinning machinery will be installed and commissioned.

Saiham Textile has two units—the spinning unit, established in 1993, and the Melange unit, which began commercial production in 2013 through a rights issue.

The company has also decided to sell or dispose of the existing machinery of the spinning unit as part of its modernisation and reconstruction programme.

In response to a query from the Dhaka Stock Exchange (DSE) on August 6 regarding the unusual increase in the share price and trading volume, Saiham Textile said on August 9 that it had no undisclosed price-sensitive information that could explain the movement.

Company Secretary Md Niamat Ullah told Orthosongbad on Wednesday that the company had already disclosed information regarding the closure of the spinning unit and its balancing, modernisation, rehabilitation and expansion (BMRE) programme.

He said the old machinery had become outdated due to prolonged use, resulting in higher production costs and lower efficiency compared with modern technology.

Regarding rumours circulating in the stock market about the BMRE project, he said the company had already disclosed that the modernisation process would take time and that new machinery would be installed.

He also denied any connection between the company and artificial manipulation of its share price, saying the price movement was part of normal market activity.

BSEC Executive Director and spokesperson Abul Kalam Azad told Orthosongbad that the regulator was aware of the matter and would investigate it before taking necessary action.