Aamra Networks and Aamra Technologies received regulatory approval to issue stock dividends for the fiscal year 2022 based on their "good prospects".
The concerns of Aamra Group will pay 5 per cent and 6 per cent stock dividends to raise their paid-up capital. They have been looking to an expansion, having reported positive business growth in the previous fiscal years.
However, the IT firms do not meet the condition that listed companies have to disburse at least 10 per cent cash dividends for two consecutive years before issuing bonus shares.
That was why they had to ask for permission of the Bangladesh Securities and Exchange Commission (BSEC), said its Executive Director and spokesperson Mohammad Rezaul Karim.
The BSEC, however, considered their business potentials and gave the go-ahead, he said.
The companies fulfill other requirements as well.
In August 2021, the securities regulator imposed the restrictions on the issuance of stock dividends to make sure bonus shares are justified.
Listed firms may issue bonus shares only for balancing, modernisation, rebalancing and expansion, to meet regulatory requirement of raising capital, and to make profitable investment or reinvestment in the company.
Aamra Network's profit soared 117 per cent year-on-year to Tk 61.39 million in the first quarter of the FY23 ended in September last year. It declared 5 per cent cash and 5 per cent stock dividends for the FY22, as they had done for the FY21.
In FY20, the company provided a 10 per cent cash dividend.
Recently, Aamra Networks got approval from shareholders for the selling of its data centre at Tk 115 million to Aamra Holdings, having common directorship, to invest in a new business and develop its existing business lines.
Aamra Networks is an IT company involved in leased bandwidth distribution and IAAS, SAAS and IP-enabled value added services. It is one of the first licensed private Internet Service Providers in Bangladesh.
On the other hand, Aamra Technologies provides comprehensive IT solutions and services.
Its first quarter's profit dropped 24 per cent year-on-year to Tk 23.20 million due to a decline in revenue and the implementation of workers' profit participation fund, the company said.
For FY22, the company declared 6 per cent cash and 6 per cent stock dividends. The year before investors received 5 per cent cash and 5 per cent stocks.
Over the last one month, the securities regulator rejected at least 12 companies seeking approval for stock dividends as they failed to comply with the guidelines.
