BM Desk :Market analysts indicate that investing in Fortune Shoes has grown more perilous for investors due to the company’s troubled past and stock market manipulations, resulting in increased uncertainty.
Initially recognized for its footwear industry, Fortune Shoes emerged as a centerpiece in the stock market after actions by the infamous Hiru syndicate. The firm became publicly traded in 2016 with shares offered at BDT 10 via an IPO, generating BDT 22 crore. Although the shares started strong, the price fell to BDT 20 before rising past BDT 150 because of market manipulations associated with trader Abul Khair Hiru. The engagement of senior BSEC officials during that period was also questioned.
The company, established in Barisal BSC, allegedly invested substantial amounts from its own portfolio in deceptive schemes, and accusations of collusion with manipulators, withholding dividends, and fabricating assets have emerged. After the political shift post-Sheikh Hasina government’s collapse, Fortune Shoes Limited chairman Mizanur Rahman reportedly escaped the country and is thought to be in Turkey.
On September 1, the Bangladesh Securities and Exchange Commission (BSEC), headed by Khandakar Rashed Maksud, declared an inquiry into all irregularities and manipulations associated with Fortune Shoes, encompassing dividend distribution problems and the people and organizations implicated in boosting its share price.
Currently, the company is listed in the “Z” category on the Dhaka Stock Exchange (DSE). On 23 October, its shares traded at BDT 13.90, a 2% rise for the day. Over the past year, share prices fluctuated between BDT 16.30 and BDT 75.70. According to the latest financial reports, Fortune Shoes earned BDT 0.06 per share in the third quarter (January–March 2024) and distributed a 5% cash dividend to shareholders in 2023. However, according to recent reports, the declared dividends have yet to be distributed to investors.
The company’s checkered history and ongoing market scrutiny make it a “thorn” for investors seeking stable returns in Bangladesh’s capital market.
