Aamra Networks shares crash 10.6% on negligible 1-paisa payout
Shares of Aamra Networks Limited plummeted by 10.60% today (6 September), hitting a multi-year low after the company recommended a nominal 1-paisa dividend for its general shareholders for the fiscal year ended 30 June 2025.
The sharp decline in the stock price followed the removal of standard price limits (circuit breakers) for the session, a typical regulatory procedure following a corporate dividend declaration.
According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE), the company's board recommended a 0.10% cash dividend, equivalent to Tk0.01 or 1 paisa per share. The payout is exclusively for general shareholders, while sponsors and directors, who collectively hold 3.07 crore shares, will receive no dividend. The total payout to public shareholders' amounts to just Tk6.22 lakh.
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The announcement triggered heavy selling, sending the share price down to Tk17.70 from its previous close.
The investor backlash comes on the heels of a disastrous financial report. For FY25, Aamra Networks reported an earnings per share (EPS) of just Tk0.13, a massive drop from the Tk2.46 recorded in the previous fiscal year.
The company's liquidity position has also turned critical. Its net operating cash flow per share (NOCFPS) swung to a negative Tk0.69 from a positive Tk2.72 a year earlier, while its net asset value (NAV) per share edged down to Tk36.14.
Management attributed the collapse in profitability to a combination of falling sales and rising operating costs. However, a senior official at Aamra Networks, speaking on condition of anonymity, revealed a deeper systemic crisis.
"The company is grappling with an acute fund shortage primarily because our corporate clients have failed to clear significant dues for services rendered. This has essentially crippled our cash flow and operational flexibility," the official said.
Aamra Networks has been struggling to regain its market standing since being downgraded to the 'Z' or junk category in February 2025 after failing to disburse an approved 10% dividend for FY24
The company also faces further administrative hurdles. As it failed to hold its Annual General Meeting (AGM) within the legally mandated timeframe, it must now seek High Court permission to convene the meeting and finalise the 1-paisa dividend.
The record date for the dividend has been set for 24 September 2026.
