Safko Spinning's stock dividend rejected
It had recommended 2% cash and 1% stock dividends for FY22
The Bangladesh Securities and Exchange Commission (BSEC) has turned down the proposal of Safko Spinning Mills to issue a 1% stock dividend for the 2021-22 fiscal year.
The company had recommended 2% cash and 1% stock dividends for FY22.
An official of the company, on condition of anonymity, said the regulator has rejected the stock dividend because the company does not have enough retained earnings.
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Safko Spinning Mills manufactures and exports cotton yarn, polyester, cotton blended yarn, synthetic yarn, etc.
The firm was listed on the stock exchanges in 2000. In January 2009, its production stopped owing to big losses in the two prior consecutive years.
The company then resumed production in May 2010.
In the July to September quarter of the fiscal 2022-23, the company had a negative retained earnings of Tk21.49 crore.
During the period, its revenue increased to Tk13.44 crore from Tk12.94 crore in the same period of the previous fiscal, and its net loss stood at Tk48 lakh, which was Tk60 lakh profit in the same quarter of FY22.
Its loss per share stood at Tk0.16 and net asset value per share at Tk21.28.
As of 30 November 2022, sponsors and directors jointly held 30%, institutions 3.40%, and the general investors 66.60% shares in the company.
The last trading price of each share of the company was Tk25 at the Dhaka Stock Exchange on Sunday.
