DSE seeks explanation from Dulamia Cotton for dividend rule breach
However, the DSE said the company failed to submit the report in accordance with regulatory requirements, prompting the issuance of a query letter.
The Dhaka Stock Exchange (DSE) has issued a query to Dulamia Cotton Spinning Mills, a listed textile company, for failing to submit its dividend distribution compliance report within the stipulated timeframe.
Under the rules of the Bangladesh Securities and Exchange Commission (BSEC) and Regulation 29 of the listing regulations, listed companies are required to submit a dividend compliance report to both the exchange and the commission within seven working days of completing dividend payments.
Shareholders of Dulamia Cotton approved a 3% cash dividend for FY25 at the annual general meeting (AGM) held on 3 December. Following shareholder approval, the company was required to disburse the dividend within one month and file the compliance report within seven working days.
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However, the DSE said the company failed to submit the report in accordance with regulatory requirements, prompting the issuance of a query letter.
According to DSE data, Dulamia Cotton has remained non-operational since 14 June 2020. Despite having no revenue in the first half of the current fiscal year due to continued closure, the company reported a profit of Tk22 lakh, with earnings per share (EPS) of Tk0.29 for the July-December period.
In the corresponding period of the previous fiscal year, it posted a profit of Tk17 lakh and EPS of Tk0.23. Notably, although the company has no active operations, its share price has continued to rise. The stock closed at Tk138.5 yesterday, up from Tk124.4 on 25 January.
