Dividend disbursement lapses push Aftab Auto, Navana CNG into Z category
As per listing rules, a company gets 30 days to pay off dividends to its shareholders after approval of the declared dividends.
The Dhaka Stock Exchange (DSE) downgraded two companies—Aftab Automobiles and Navana CNG—to the Z category for failing to disburse approved dividends to their shareholders within the stipulated timeframe.
In separate disclosures on its website yesterday, the bourse said it placed the shares of the two companies in the Z category with effect from 15 February.
Following the downgrade decision, the share prices of both companies declined yesterday, DSE data showed.
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As per listing rules, a company gets 30 days to pay off dividends to its shareholders after approval of the declared dividends.
A directive, issued by the stock market regulator in May 2024, mandates that if a listed company fails to pay or disburse at least 80% of the declared or approved dividend within the stipulated timeframe, it will be downgraded to the Z category.
Navana CNG
The company's board recommended a 10% cash dividend exclusively for general shareholders, excluding sponsors and directors. Shareholders at its AGM approved the dividend on 29 December.
Despite the expiry of the 30-day mandated timeframe after approval, the engineering sector firm failed to disburse the dividend to its shareholders.
As a result, to comply with the regulator's directive, the bourse downgraded Navana CNG to the Z category.
Following the decision, its share price declined by 0.92% to Tk21.50 on the DSE.
In FY25, the company posted a profit of Tk68 lakh, with earnings per share (EPS) of Tk0.10.
Aftab Auto
After returning to the A category from the Z category two months ago — following the disbursement of its FY24 dividend — Aftab Automobiles has once again been downgraded to the Z category after failing to pay dividends for FY25.
The company recommended a 10% cash dividend for FY25, which was approved at its AGM held on 29 December.
However, it failed to disburse the approved dividend to shareholders, prompting the DSE to downgrade its shares to the Z category.
Aftab Automobiles' share price declined by 1.59% to Tk31 yesterday on the DSE.
