Sonali Aansh Industries has declared a 100 per cent stock dividend for the fiscal 2021-22, the highest since its listing with the stock market, to expand its paid-up capital, a requirement set by the securities regulator.
Bangladesh Securities and Exchange Commission (BSEC) last December asked 64 companies to increase their capital to at least Tk 300 million by June this year.
Sonali Aansh's paid-up capital stands at Tk 27.12 million.
It has reported a staggering 247 per cent profit growth year-on-year to Tk 10.64 million in FY22.
As a result, earnings per share jumped to Tk 3.92 from Tk 1.13 for the year, according to a disclosure posted on the Dhaka Stock Exchange's website on Thursday.
The disclosure of the stock dividend and the stellar profit growth attracted investors, leading to an 8.65 per cent, or Tk 64.20, increase in the share price to Tk 806.20.
The stock jumped 72 per cent in the past three months through Thursday, having shares traded between Tk 397 and Tk 961 in the last one year, the DSE data shows.
Sonali Aansh started rising on the stock market after the December directive from the securities regulator, said a leading broker.
The BSEC on September 12 advised Sonali Aansh to boost its paid-up capital by issuing bonus shares, said a top official of the company, requesting anonymity.
So, the company declared the dividend out of the accumulated profit or retained earnings, he said, adding that after the declaration, the company's retained earnings shall remain positive.
The company provided an annual 10 per cent cash dividend for the last 10 years.
Its net asset value per share was at Tk 228.58 and net operating cash flow per share Tk 9.49 for the year ended in June, increased from Tk 225.65 and Tk (12.86) in the previous fiscal year.
The company's board has also decided to enhance the authorised capital to Tk 500 million from existing Tk 100 million, subject to the approval of the shareholders at the annual general meeting.
Sponsor-director holds 50.78 per cent stakes, while institutional investors 5.63 per cent and general investors 43.59 per cent until the end of October this year.
Having started commercial production in 1982, Sonali Aansh Industries is the leading export-oriented industry of jute yarn and diversified jute products in Bangladesh.
The company exports jute yarn & fabric and jute products to Turkey, Egypt, Spain, France, Belgium, Germany, Italy, Saudi Arabia, Iran, Algeria, China, Japan, Korea, Russia, Singapore etc.
The company was listed with the DSE in 1985 when Beximco Group was its owner. Later, the business conglomerate exited the company's board.
