C&A Textiles downgraded to Z category
According to DSE listing regulations, companies must hold their AGMs within 45 working days after the record date set during the year-end board meeting
The Dhaka Stock Exchange (DSE) has downgraded C&A Textiles to the Z or junk category for failing to hold its annual general meeting (AGM) within the stipulated timeframe.
In an announcement today (16 January), the DSE stated that the reclassification complies with a securities regulator directive issued on 20 May last year. The directive mandates that companies failing to conduct their AGMs within the prescribed timeframe must be reclassified to the Z category.
Earlier on Wednesday, the stock exchange downgraded Union Bank, Sea Pearl Beach Resort, and Sonali Life Insurance to the Z category for the same reason.
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According to DSE listing regulations, companies must hold their AGMs within 45 working days after the record date set during the year-end board meeting.
However, none of the firms sought an extension from the Bangladesh Securities and Exchange Commission (BSEC) to hold their AGMs after failing the deadline. Consequently, the DSE decided to downgrade their category.
Following the downgrade, C&A Textiles' share price decreased by 4.17% to Tk4.60 on the Dhaka bourse today.
In July 2023, the company announced that its board of directors had approved the amalgamation of C&A Textiles with Alif Industries, another public limited company listed on the DSE and the Chittagong Stock Exchange.
As per the plan, C&A Textiles will merge with Alif Industries, which will remain as the surviving entity after the amalgamation.
The approval is subject to several conditions, including the consent of the BSEC, approval of the scheme of amalgamation by banks, creditors, shareholders, and other stakeholders, and final sanction of the scheme by the High Court.
C&A Textiles raised Tk45 crore from the capital market with an initial public offering (IPO) in 2015.
According to its prospectus, the company paid Tk30.87 crore towards loan repayments and business expansion.
In June 2017, C&A Textiles announced a sudden production shutdown for renovation work, and its offices have remained closed since then.
In 2020, C&A Textiles' former managing director Rukshana Morshed was arrested in Chattogram in a case filed over a defaulted loan.
The BSEC also found that Rukshana, directors Sharmin Akther Lovely and Bangladesh Shoes Industries Limited had together sold around 1.22 crore shares of the company without prior declaration, earning around Tk12 crore from these sales.
In February 2021, the commission restructured the underperforming company's board, appointing seven directors. In November 2021, Alif Group reached an agreement with C&A Textiles to take over the firm.
