KDS Accessories focuses on retained earnings for factory upgradation
The company has been distributing 15 percent dividend among its shareholders since its listing with the stock market
The KDS Accessories Limited of Chattogram is upgrading its factory using its own resources, and without the help of any bank loan financing; this requires the company to increase its retained earnings, while keeping the amount of dividend distributed among its shareholders unchanged.
The company has been distributing 15 percent dividend among its shareholders since its listing with the stock market.
The KDS Accessories of KDS Group, after reviewing the company's audit report for 2018-19 fiscal, made a recommendation for a 10 percent cash and 5 percent stock dividend for the period, the company's earnings per share (EPS) being Tk2.20.
Keep updated, follow The Business Standard's Google news channel
The company also distributed 15 percent dividend for 2016-17 and 2017-18 fiscal, the dividend being a combination of cash and stock.
"We do not want our dividend payments to be different from one year to another, " Biplob Kanti Banik, the company's chief financial officer (CFO), told The Business Standard.
"We are financing our factory upgradation using our own resources," said Biplob Kanti Banik, as he added: because of this, the company has to raise its retained earnings.
The company got enlisted in the stock market in 2015. At the time, they raised Tk24 crore from the market through initial public offering (IPO), selling 1.20 crore shares of Tk20 each that included premium of Tk10.
The KDS Accessories has two factories in Gazipur and Chattogram. Using the funds collected through the IPO, the company established the third unit of its Gazipur factory.
The company manufactures cartons, buttons, elastics, labels, paper and printing. Seventy-seven (77) percent of the company's revenue comes from the selling of cartons.
