Aftab Automobiles to hold 30% share to comply with BSEC’s rule

AFTAB AUTOS FINANCIALS

Sponsors, directors currently hold a 28.42% share

They will buy some 15.12 lakh shares more to fulfill 30% condition

Tk12 crore profit in FY2019-20

Recommended 10% cash dividend at the end of FY2019-20

The listed company Aftab Automobiles Limited has announced it will buy shares to comply with the condition of the Bangladesh Securities and Exchange Commission (BSEC).

According to the regulator's directive, sponsors and directors of listed companies must hold 30% of their total shares.

The three directors of Aftab Automobiles – Khaleda Islam, Saiful Islam and Sajedul Islam – have announced the purchase of 15,12,575 shares to conform with the regulation.

As per the company's announcement, the directors will buy the shares from the secondary market at the current market price within the next 30 days.

Currently, the sponsors and directors hold 28.42% or 2,72,07,098 shares of the total 9,57,32,422.

They will buy 15,11,628 more shares to fulfill the 30% condition.

Last July, the Bangladesh Securities and Exchange Commission set a 60-day deadline for companies that failed to comply with the regulation.

Later, the timeframe was extended by one more month. According to the latest data, 16 companies have complied with the conditions while 27 have not. Of the 27 companies, 15 did not take initiative to conform to the rule.

In this situation, the capital market regulator is going to decide on the reconstruction of the board of the listed companies that failed to go by the 30% share-holding directive.

The company secretary of Aftab Automobiles Mohammad Jaman Khan told The Business Standard, "Now our directors will buy the shares to follow the regulator's directive."

The amount of shares they hold and that has been announced to buy will meet the condition, said Jaman.

"Shares will be bought from the market within the next 30 days," he said.

Khaleda Islam, a director of Aftab Automobiles, has announced to purchase 4,78,663 shares. She currently holds 2.71% or 26,03,467 shares of the company.

Another Director Saiful Islam who now owns 19,88,215 or 2.07% of the company shares will buy another 5,55,249.

Director Sajedul Islam will purchase 4,78,663 shares who currently holds 19,88,215 shares or 2.07% of the total shares of the company.

Aftab Automobiles Ltd was listed on the stock exchange in 1987.

Ordinary investors hold 34.24% while institutional investors 37.33% of the company shares.

The company made a profit of Tk12 crore in fiscal year 2019-2020. It offered a 10% cash dividend to the investors at the end of the year.

In July-September period of the current financial year 2020-2021, the company made a profit of Tk1.89 crore.