Two firms secure BSEC consent to disburse stock dividends

Two firms — CVO Petrochemical Refinery PLC and Star Adhesives Limited — secured the Bangladesh Securities and Exchange Commission (BSEC) consent to disburse their declared stock dividends for the fiscal year of 2024-25.

Following the disclosure filed on the Dhaka Stock Exchange (DSE), CVO Petrochemical, which traded on the main trading platform of the stock exchange, share price jumped by 4.92% to reach Tk170.70. For Star Adhesives, traded on the SME platform of the stock exchange, shares closed 7.22% higher at Tk99.30.

Earlier, in September, CVO Petrochemical declared an 11% cash and 9% stock dividends to its shareholders for FY25 and set the record date for 30 October to entitle the eligible shareholders for the dividends. 

But the company did not secure the consent from the BSEC before the record date. That is why, it set the new record date at 17 December.

Besides, on 28 October, Star Adhesives recommended 12.5% cash and 50% stock dividend for the last fiscal year. The company will declare the record date later.

According to the BSEC's directive issued in September 2021, listed companies are required to acquire prior approval from the BSEC for disbursing stock dividends for those who failed to pay out at least 10% cash dividends for two consecutive years.

CVO Petrochemical had paid a 10% cash dividend for FY24 and 5% cash dividend for FY23, where Star Adhesives had paid a 12.5% cash dividend in each of those same years.

Despite paying over 10% cash dividend for the two consecutive years, Star Adhesive is required to secure regulator's approval for stock dividend as it will disburse the dividend from its retained earnings.

Meanwhile, CVO Petrochemical reported an earnings per share (EPS) of Tk3.82, with total profit standing at Tk10.61 crore in FY25. A year earlier, in FY24, its profit was Tk6.50 crore with an EPS of Tk2.34.

In FY25, Star Adhesives reported the earnings per share of Tk2.49, which was 16% lower from the previous year.