Beximco Synthetics Limited has decided to delist from the two stock exchanges- Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
The company has written to Bangladesh Securities Exchange Commission for guidance in this matter as there are no clear rules for a company to delist from the stock exchanges, according to a press release.
The company was incorporated with Registrar of Joint Stock Companies And Firms (RJSC) on July 18, 1990 as a public limited company for production and sales of Drawn Texturizing Yarn (DTY) which is a type of polyester yarn.
Later, it was listed with DSE and CSE on November 4, 1993 and November 6, 1995 respectively. Since its establishment, the company operated in a single product market segment viz DTY (Polyester drawn textured yarn.
However, since there was sizable demand for DTY, the company made good profit and regularly declared dividends from 1996 to 2013 for 18 years without any interruption.
However, since 2013 it could not declare any dividend as the company passed through extremely difficult times since smooth business operations were hampered repeatedly due to the reduction of duties on imported DTY by the government resulting in cheap imported foreign DTY taking over the market and making the production of this type of yarn in Bangladesh unviable.
Therefore, the company could not maintain targeted production and profitability during last seven years which resulted in the company accumulating huge losses. This has resulted in the shares of the company being traded below face value for a number of years. Thus, the company was forced to cease production and to close down the plant. It retrenched all the workers and most of the officers and staff after paying all their dues as per law.