CVO Petrochemical Refinery Limited is set to start its commercial operation with an annual production capacity of 25,000 tonnes of petrol and diesel.
An agreement was signed between Bangladesh Petroleum Corporation (BPC) and CVO yesterday to purchase petrol and diesel. The purchase price of petroleum will be Tk85 per litre, which BPC will sell at Tk93 in the market.
The signing ceremony was attended, among others, by BPC Chairman Eunusur Rahman, CVO Petrochemical Chief Adviser Moyeen Uddin Khan Badal MP and its Chairman Shamsul Alam Shamim.
The share price of CVO petrochemical company rose abnormally in last two weeks as the news of company’s commercial operation has been spread over the market by insider traders, said a senior executive of a merchant bank. The share price of the company rose by 38% to Tk771 from Tk558 in last two weeks, according to the Dhaka Stock Exchange data.
The Chittagong Vegetable Oil company took the new name CVO petrochemical refinery as it changed its business pattern from vegetable oil to petrochemical refinery plant.
Stocks of Chittagong Vegetable Oil Industries had emerged as one of the most overvalued shares in the year 2010 as identified by the probe committee on the share market scam.
The share price rose to Tk6,500 from Tk100 in less than one year. The committee found that Chittagong Vegetable Oil Industries, better known as CT Veg, was traded at Tk100 during early 2010. The share price started rising from March that year and reached to Tk6,500 in January 2011.
The company offered 20% stock dividend, despite operational losses in the year 2008-2009 amid suspension of sales.