DSE downgrades Kay and Que to Z category for failing to disburse dividend

The Dhaka Stock Exchange (DSE) has downgraded Kay & Que (Bangladesh), a publicly listed company, to the Z category due to its failure to disburse the approved dividend within the stipulated timeframe.

In a disclosure regarding the downgrade, it was stated that the company has been placed in the Z category from the existing B category, effective 3 February, in line with a directive from the Bangladesh Securities and Exchange Commission (BSEC).

The disclosure also stated that stockbrokers and merchant bankers have been requested to refrain from providing loan facilities for purchasing securities of Kay & Que (Bangladesh).

After downgrading the category, its share price declined 4.22% to Tk195 each at the DSE.

On 12 November last year, Kay and Que recommended a 3% cash dividend and a 2% stock dividend for its shareholders for the year ended on 30 June or for fiscal 2023-24.

The stock dividend was subject to the approval of the BSEC.

Later, the cash dividend was approved in its annual general meeting (AGM) held on 22 December through the hybrid system.

According to listing regulations, listed companies are mandated to disburse declared or approved dividends within 30 days after approval in their AGM.

So, despite the approval of the cash dividend, Kay and Que has yet to disburse the declared dividend to its shareholders.

After the recommendation of dividends, a day before its record date on 4 December, it said the application was submitted to BSEC but did not receive any update.

Later, on 22 January, the company informed that it received BSEC consent to increase paid-up capital by issuing a 2% stock dividend.

For the entitlement of stock dividends, it fixed a new record date on 2 February.