1 paisa dividend for 10 shares! Acme Pesticides stuns investors

In a move that stunned investors and set a record in the Dhaka Stock Exchange (DSE), Acme Pesticides Limited has declared a mere 0.01% cash dividend for the financial year 2024-25 – the lowest ever dividend announced by any listed company in DSE history.

According to the company's price-sensitive statement published on 30 October, shareholders will receive only Tk0.001 per share, which translates to 1 paisa for each 10 shares having a face value of Tk10.

Based on this calculation, Acme Pesticides will spend only Tk1.35 lakh to distribute dividends among its shareholders. In practical terms, an investor holding 1,000 shares — worth roughly Tk16,000 at the current market price — would receive less than Tk1 in total dividend.

Its share closed at Tk15.90, and the market cap is Tk220 crore.

The declaration has sparked disbelief and criticism across social media platforms. Several investors took to Facebook and X (formerly Twitter) to express frustration and ridicule over what they called a "historic dividend moment."

One investor wrote, "History has been made! If you have 1,000 shares, you get 85 to 90 paisa. Truly, this is a record!" Another post sarcastically suggested that this dividend "redefines the meaning of shareholder value."

Market insiders say this marks the first time in the DSE's 67-year history that a listed firm has announced a dividend below 0.10%.

A managing director of a leading brokerage house said the company likely declared the nominal dividend to maintain its "B" category status on the DSE.

"Under listing regulations, companies declaring dividends below 5% are placed in the B category. If no dividend is declared, the company moves to Z category, where trade settlements take three days instead of two," he explained.

The company has called its annual general meeting (AGM) for 29 December, with the record date set for 20 November.

Acme Pesticides' financials reveal deepening losses for a second consecutive year. The company incurred a net loss of Tk15.37 crore in FY25, compared to a loss of Tk10.27 crore in FY24. Its loss per share rose to Tk1.14, up from Tk0.76 the previous year.

The firm had paid a 0.25% cash dividend for FY24 and a 0.10% cash dividend for FY23. Its highest-ever payout was a 5% cash dividend for FY22.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) is reportedly preparing to forward an inquiry report to the Anti-Corruption Commission (ACC), recommending stern action against directors, officials, and placement shareholders of Acme Pesticides who allegedly obtained shares worth Tk23.39 crore without payment.

The BSEC has already cancelled the license of Shahjalal Equity Management, the company's issue manager, for failing to ensure compliance and due diligence during Acme Pesticides' IPO. It also plans to take measures against Shiraz Khan Basak and Co, the pre-IPO auditor, and Shafiq Basak and Co, which allegedly failed to properly audit the utilization of IPO funds.