Most stakeholders in the capital market have demanded a review of Walton’s financial statements. They said that the BSEC had been joking with stock traders by introducing a company like Walton into capital market with inflated financial report as well as unjustified premium.
Due to the irrational benefit given to the Walton the company share price rose to Tk 950 within just 9 working days. The price of a company with paid up capital of Tk 300 crore has reached Tk 26,000 crore.
Even if the owner of the company gains a lot, the investors will lose. Because the entrepreneurs of the company can sell 80 percent shares and withdraw about Tk 20 thousand crore from the market. As a result, re-examining the company’s financial statements with a good audit firm will reveal the true value and re-set the value of the price.
Meanwhile, the regulatory body Bangladesh Securities and Exchange Commission (BSEC) is embarrassed about Walton because BSEC has to hear criticism from different quarters every day about the shares of the company. Even in front of all market participants, including the finance minister, Salman F. Rahman, the prime minister’s adviser on private industry and investment, said Walton’s listing sent the wrong message to the market.
According to him, it is a kind of distortion. Besides, directors of stock exchanges, various merchant banks, other institutional investors and individual investors are also criticizing Walton’s listing. Which is embarrassing for BSEC. “We are embarrassed about the matter,” a BSEC official told Business Mirror on condition of anonymity. I am looking for an easy solution in this regard.
“We knew there would be some fuss about Walton,” he said. But this situation will be created, it was not in anyone’s mind. He said that after three years, the lock-in will be lifted from the shares of entrepreneurs. Then maybe the entrepreneur will want to take the opportunity. However, steps must be taken to stop it.
Meanwhile, the price of Walton’s 10 taka share reached 940 taka on Monday. As a result, the value of the company with paid up capital of Tk 302 crore has reached Tk 26,000 crore; Which, of course, made the video an overnight sensation. In this process, the way has been paved for the entrepreneurs of the company to withdraw Rs 20,000 crore from the market. The problem is growing every day.
Abdur Razzak, general secretary of the Bangladesh Capital Market Investors Unity Council, said, “We have already told the commission about Walton’s shares.” This will create problems in the market. We have also talked about this with the chairman of the new commission. A solution to the issue is urgent. He said financial reports need to be re-evaluated in the interest of investors.
A Share Trader Zaker Ullah told Business Mirror the IPO came with a large bribe. Fair price 12 to 15 rupees. The illusory property has been inflated like a papyrus and a balloon. Managers started selling shares in a clandestine way.