Midas Finance slips into insolvency as negative NAV deepens to Tk24.87
The latest loss came after Midas Finance posted a staggering consolidated net loss of Tk337 crore in 2025, resulting in a loss per share of Tk23.40.
Midas Financing PLC has slipped into financial insolvency as its net asset value (NAV) per share plunged further into negative territory to Tk24.87 by 30 June, with mounting losses pushing its liabilities above the value of its assets.
The non-bank financial institution disclosed the negative NAV in its half-yearly financial statements filed with the Dhaka Stock Exchange (DSE) today (11 August), underscoring the erosion of its net asset base.
Market insiders said a negative NAV poses a severe risk to investors as it means the company's liabilities exceed the value of its assets. In cases of severe insolvency, creditors typically have priority over shareholders in any liquidation, leaving shareholders at risk of receiving little or nothing.
Three years without dividends as losses mount
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The company's financial position deteriorated sharply in the first half of 2026, when it incurred a consolidated net loss of Tk89 crore, translating into a loss per share of Tk6.21 for January-June.
The latest loss came after Midas Finance posted a staggering consolidated net loss of Tk337 crore in 2025, resulting in a loss per share of Tk23.40.
Its NAV per share, which had already fallen to negative Tk18.66 by the end of December 2025, thus deteriorated by another Tk6.21 in the first half of this year.
The company has also failed to declare any dividend for three consecutive years amid persistent losses, relegating its shares to the 'Z' category on the Dhaka bourse.
Midas Finance, listed on the DSE in 2002, has reached a point where accumulated losses have eroded its net asset base, leaving its liabilities in excess of its assets.
Shareholders typically rank behind creditors in insolvency or liquidation proceedings and may receive little or nothing, market insiders said.
The company's shares closed at Tk5.90 today, giving it a market capitalisation of Tk84.89 crore.
As of July 2026, sponsors and directors held 38.36% of the company's shares, while institutional and general investors collectively held more than 51%, leaving a significant portion of the exposure with outside shareholders.
