DSE downgrades Hamid Fabrics to Z
According to DSE listing regulations, companies are required to hold their AGMs within 45 working days after the record date, which is set during the year-end board meeting
The Dhaka Stock Exchange (DSE) downgraded Hamid Fabrics to Z category yesterday due to its failure to hold an annual general meeting (AGM) on time.
In an announcement, the DSE stated that the reclassification complies with a securities regulator directive issued on 20 May last year, which mandates that any issuer failing to conduct its AGM within the stipulated time frame must be moved to the Z category – commonly referred to as the junk stock category.
According to DSE listing regulations, companies are required to hold their AGMs within 45 working days after the record date, which is set during the year-end board meeting.
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Following the downgrading of the category, Hamid Fabrics' share dropped by 3.91% to close at Tk12.30.
Meanwhile, Hamid Fabrics reported that its revenue dropped over 52% to Tk24.87 crore in the July- September quarter of the fiscal year 2024-25 compared to the same time of the previous year.
During the period, it incurred a loss of Tk9.65 crore. At the end of September, its earnings per share stood at Tk1.06 negative.
The company said in its price-sensitive statement that revenue has decreased significantly due to a reduction of sale orders from global buyers. As a result, profitability during the quarter has decreased accordingly, which has affected earnings per share.
The board of the company has decided not to pay dividends to its shareholders for the last fiscal year due to incurring a Tk37 crore loss.
