Fazal Cloth Mills denies knowledge of price trigger as stock soars 132% in 30 days

Fazal Cloth Mills Limited (FZCM) said that it was not aware of any matter contributing to the unusual movement in the share price of the company during the recent period.

The mills dismissed the reports in a notice to the Pakistan Stock Exchange (PSX) today.

“The letter requires the company to furnish the reasons and/or any material information in the Company’s knowledge which may have resulted in substantial increase in price of FZCM during the preceding period,” it wrote in its notice.

In the last 30 days, the share price of Fazal Cloth Mills has risen from Rs169 to Rs391.99, a significant increase of 132%.

The company, in its notice on Tuesday, said that there was no material information which has not previously been disclosed to the market in this regard.

“We assure you that the Company is fully cognizant of all applicable legal requirements with regard to dissemination of material information and if there will be any material information the same will be disseminated in accordance with the applicable requirements of the Securities Act, 2015 and Rule Book of Pakistan Stock Exchange Limited.”

The mill was set up under the Companies Act, 1913 (now, Companies Act, 2018) in 1966 as a public limited company.

It manufactures and sells yarn and fabric. Currently, it has seven spinning units with all of which have a captive gas-fired power generation with a capacity of 38.72 MW.