No undisclosed reasons for share decline, IDLC replies to DSE
IDLC Finance, the country's leading non-bank financial institution, responded to queries from the Dhaka Stock Exchange (DSE) on Wednesday, stating there are no undisclosed reasons for the recent decline in its share prices.
Since the removal of the floor price in January, the company's share price has dropped significantly, falling 41% to Tk27.5 as of Wednesday, despite no price-sensitive information being disclosed.
Normally, stock exchanges issue queries to companies when their share prices unusually rise without any price-sensitive disclosures. However, IDLC Finance's situation was unique as the query was issued due to an unusual decline in its share price.
Keep updated, follow The Business Standard's Google news channel
General investors are demanding that if stock exchanges inquire about the reasons behind the share price increase of any company, they also investigate the reasons for share price decreases.
This approach would enable investors to consider reallocating their funds to other stocks or adjust their investment strategies for better returns.
In response to the DSE query, the company said they do not have any undisclosed material information related to the company's operations that might impact the fall in its share prices.
In the March quarter of this year, IDLC reported consolidated earnings per share of Tk0.85, up from Tk0.83 in the same period last year. The company achieved a consolidated net profit of Tk35.42 crore compared to Tk34.41 crore in the previous year's corresponding period. Its net interest income stood at Tk128 crore for the quarter.
The company has recommended a 15% cash dividend for its shareholders for the year ending in 2023.
Non-banking financial institutions in the country are facing unprecedented challenges, including high non-performing loans, a liquidity crisis, and a significant squeeze in their net interest margins in recent quarters.
Additionally, subsidiaries of the institutions operating in capital market products have not achieved the expected returns due to the market slowdown.
As a result, investors are adjusting their investment strategies by evaluating sectoral prospects amid the bearish trend.
