Rahima Food relegated to 'Z' status over non-operational period

The Dhaka Stock Exchange (DSE) has downgraded Rahima Food Corporation Limited, a concern of City Group, from the 'B' category to the 'Z' category after the company remained out of production for six consecutive months.

Under a directive of the Bangladesh Securities and Exchange Commission (BSEC), any listed issuer that stays out of operation, production, or exploration for a continuous period of at least six months is classified as non-operational. 

The six-month threshold, however, excludes periods spent on renovation or BMRE (Balancing, Modernisation, Rehabilitation and Expansion), as well as disruptions caused by force majeure.

Following the downgrade, the company's share price fell 7% to Tk126.20 on the DSE yesterday, placing it among the session's top losers.

A company is placed in the 'Z' category if it fails to hold an annual general meeting (AGM), does not declare dividends based on annual performance, remains non-operational for over six months, or accumulates losses exceeding its paid-up capital after adjusting revenue reserves.

In the October–December quarter of 2025, Rahima Food reported a loss per share of Tk0.07, compared with a loss of Tk0.05 in the same period a year earlier. Its net asset value per share stood at Tk9.29 at the end of December 2025.

Established in 1990 as a private limited company, Rahima Food went public in 1997 under the food and allied sector. The company has a paid-up capital of Tk20 crore. 

The DSE delisted its shares on 19 July 2018, citing prolonged inactivity. In FY2016-17, City Sugar Industries, another concern of City Group, acquired the sponsor shares with plans to revive the business. The company was subsequently relisted on the DSE in 2020.