Beximco Synthetics closed

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.