IFAD Autos has experienced a remarkable surge in its share price, climbing over 24% last week to close at 27.30 taka. This increase has placed the company at the top of the price gain list on the Dhaka Stock Exchange (DSE), despite a general downturn in the market.
The excitement stems from the official launch of Royal Enfield motorcycles in Bangladesh last Monday, managed by IFAD Motors, a subsidiary of IFAD Group. The new motorcycle has captivated young enthusiasts and investors alike, leading to heightened interest in IFADS Autos’ shares.
However, company insiders caution that this enthusiasm may be misplaced. While IFAD Autos and IFAD Motors are part of the same corporate family, they operate independently with separate business and financial accounts. As such, IFAD Autos will not financially benefit from the sales of Royal Enfield motorcycles.
Company secretary Sazzad Hossain Talukdar emphasized, “There is no business relationship between IFAD Autos and IFAD Motors.” This clarification highlights a critical misunderstanding among investors, many of whom believed that the excitement surrounding Royal Enfield would directly enhance IFAD Autos’ profitability.
After the official launch of Royal Enfield’s sales activities in the capital last Monday, IFAD Autos’ share price began to surge from Tuesday. Over the next three days, the company’s shares rose by nearly 4 taka, with around 3.4 million shares traded.
Source – Prothom Alo
