Daffodil Computers to convert Tk49cr loan into equity shares

Daffodil Computers Ltd has announced plans to issue 3.26 crore new shares at Tk15 each to convert a Tk49.03 crore loan from one of its associate firms — also part of the Daffodil Group — into equity shares.

The decision was approved at a board meeting held on 10 November, the company said in a price-sensitive disclosure to the Dhaka Stock Exchange (DSE) today (11 November). 

The proposed share conversion, however, is subject to approval from the Bangladesh Securities and Exchange Commission (BSEC).

The company has also scheduled an Extraordinary General Meeting (EGM) for 29 December to seek shareholders' consent for the conversion. The record date has been fixed for 2 December 2025. 

Following the announcement, Daffodil Computers' shares closed 2.69% higher at Tk34.40 on the DSE.

This is not the first time the company has attempted such a move. In December 2024, Daffodil Computers had proposed issuing fresh shares at Tk10 each to convert loans from Daffodil Group entities into equity. 

However, the BSEC rejected that proposal, which involved issuing 4.67 crore shares to settle a loan from Creative International — concern of the Daffodil Family.

At the time, the securities regulator turned down the plan, citing that the move would unfairly favour the group's controlling interests while diluting the holdings and earnings of ordinary investors.

Market analysts and investor groups had also voiced concerns that such intra-group share conversions could undermine public shareholder value and erode confidence in corporate governance practices.

Daffodil Computers, one of the early technology companies listed on the stock exchange, remains a key entity within the Daffodil Group, which has diverse interests in IT, education, and media.

Earlier, the company has decided not to pay any dividend to its shareholders for the fiscal year of 2024-25. During the fiscal year, its earnings per share dropped by 24% to Tk0.16, compared to the previous year.