BSEC okays Himadri's 250% stock dividend instead of 700%
Earlier, the company declared the highest-ever dividend — 700% stock and 10% cash — for the fiscal 2022-23.
The Bangladesh Securities and Exchange Commission (BSEC) has approved a 250% stock dividend instead of 700% for Himadri Limited, an SME platform company.
Earlier, the company, a concern of the Ejab Group, declared the highest-ever dividend — 700% stock and 10% cash — for the fiscal 2022-23.
An official of the company who preferred not to be named told The Business Standard the commission gave the approval after the company had applied for its consent.
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Now, the company has applied to the commission for a review of its decision, he said.
The company also submitted related documents required by the commission.
"The company wanted to increase its paid-up capital as per BSEC requirement to come into the main market. If the commission does not consider this, then the process of coming to the main market may be delayed," he said.
The company will arrange its annual general meeting on 27 December instead of 14 December. For this, the record date has been set on 21 December.
The company stated that it has declared the stock dividend from its retained earnings, not from capital reserve or revaluation reserve.
As per the company's stock dividend recommendation, each shareholder will get seven new Himadri shares against each existing share of the company. Also, the company's paid-up capital will become seven times from its existing Tk75 lakh.
The last closing share price of the company was Tk6,999 on the Dhaka Stock Exchange.
Himadri Limited was incorporated in 1974. It provides cold storage facilities for agro-based products, mainly potatoes. Currently, it has six potato cold storages in Rangpur, Bogura, Joypurhat, Thakurgaon, Gaibandha, and Dinajpur.
According to price-sensitive information, the company's earnings per share increased by 43% year-on-year and stood at Tk7.62 at the end of FY23.
In September 2021, Himadri Limited was shifted to the SME platform from the over-the-counter market. In the OTC market, the company's shares were last traded on 8 March 2014.
