The Bangladesh Securities and Exchange Commission (BSEC) has given the green light to two textile companies -Desh Garments and Queen South Textile Mills -to issue bonus shares.
In a filing with the Dhaka Stock Exchange (DSE), Desh Garments said the securities regulator has accorded consent for issuance of 10 per cent stock dividend for the year ended June 30, 2022.
On October 31, the board of directors of the company had recommended the stock dividend in order to increase its paid-up capital.
According to the BSEC rules, companies failing to pay out at least 10 per cent cash dividends for two consecutive years will require prior approval from the securities regulator for disbursement of stock dividend. Desh Garments is such a company.
The company disbursed a 5 per cent cash dividend in 2021 and a 3 per cent stock dividend in 2020.
After getting the regulatory approval, the company has fixed the record date on January 3, 2023 for entitlement of the bonus shares.
In the FY 2022, Desh Garment's net profit plunged 87.5 per cent to Tk 0.37 million. Accordingly, the company's earnings per share dropped to 0.05 from Tk 0.40 the previous year.
Its net asset value (NAV) per share stood at Tk 19.45 and net operating cash flow per share (NOCFPS) at Tk (12.41) for the year ended on June 30, 2022 as against Tk 19.70 and Tk (0.39) respectively for the same period of the previous year.
Listed in 1989, Desh Garments' share closed at Tk 147.50 on Monday, losing 0.94 per cent over the previous day. Its shares traded between Tk 135.60 and Tk 206.90 in the last one year.
Queen South Textiles Mills: The stock market regulator has given the nod to the company for issuance of 6.0 per cent stock dividend for the year ended June 30, 2022.
The record date for entitlement of the bonus share has been set on January 2.
On October 23, the board of directors of the company recommended 6.0 per cent cash and 6.0 per cent stock dividend for FY 2022.
The company has also reported EPS of Tk 1.64 for the year FY22 as against Tk 1.25 for the same period of the previous year.
