Aftab Automobiles returns to A category after 9-month with dividend payout
As the company did not distribute the dividend within the stipulated time, the DSE downgraded it to the Z category. Since then, its shares had been traded under the Z category
Aftab Automobiles, a listed engineering firm, has returned to the A category nine months after being downgraded to the Z category, following the payment of dividends to its shareholders for the 2023–24 fiscal year.
Earlier, on 5 February, the Dhaka Stock Exchange (DSE) downgraded the firm to the Z category in compliance with a directive issued by the stock market regulator in May 2024, after it failed to disburse the approved 10% cash dividend to shareholders.
On 28 October 2024, Aftab Automobile's board recommended a 10% cash dividend only for its general shareholders except its owners. The declared dividend is approved in its annual general meeting (AGM) held on 24 December that year.
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According to DSE regulations, listed companies must disburse declared or approved dividends within 30 days of approval at the AGM. If a company fails to do so, it may incur a fine of Tk5,000 per day until the payment is made.
As the company did not distribute the dividend within the stipulated time, the DSE downgraded it to the Z category. Since then, its shares had been traded under the Z category.
However, a disclosure on the DSE website today (17 November) stated that Aftab Automobiles has been moved back to the A category after reporting the disbursement of its 10% cash dividend for the year ended 30 June 2024.
Stock brokers and merchant bankers are requested to abstain from providing loan facilities to purchase the securities of Aftab Automobiles in between 1st to 7th trading days following the change of categorisation, with effect from 18 November, the disclosure reads.
Aftab Automobiles shares price closed at Tk34.80 each yesterday, which is 3.88% higher than the previous trading session.
In 2024–25 fiscal year, its board has recommended a 10% cash dividend — despite incurring losses — for general shareholders only.
The declared payable dividend amounts to Tk7.45 crore. The recommended dividend will be approved at its upcoming AGM, scheduled for 29 December.
