Desh Garments downgraded to Z category
The Dhaka Stock Exchange (DSE) today (27 January) decided to downgrade Desh Garments to the Z category from B category, after the company failed to disburse approved dividends to their shareholders.
In FY25, the company recommended a 3% cash dividend to their general shareholders other than sponsors and directors of the company.
According to the DSE, after declaring dividend in its board meeting and obtaining approval from general shareholders at the annual general meeting (AGM), the company failed to disburse the dividend to their shareholders within the stipulated timeframe.
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As per listing regulations, listed companies must disburse declared or approved dividends within 30 days of approval at their AGM.
Due to the failure to disburse dividends on time, the DSE downgraded this company to the Z category.
A company falls into the Z category if the firm fails to hold an AGM, fail to declare any dividend based on annual performance, have not been in operation continuously for more than six months, or accumulate losses that exceed its paid-up capital after adjusting revenue reserve.
Yesterday, the share price of the company increased 1.97% to Tk113.80 on the Dhaka stock exchange.
A company official said, seeking anonymity that this issue will be resolved within a week. However, the official did not share how much has been disbursed to their shareholders within the stipulated timeframe.
In the July-September quarter, the company made revenue of Tk21.68 crore, which was Tk16.11 crore in the same period of the previous year.
In this quarter, the company made a profit of Tk3.62 lakh and its earnings per share stood at Tk0.04.
Its net asset value per share stood at Tk157.03 at the end of September 2025.
