Dhaka bourse to inspect premises of Excelsior Shoes
BSEC plans to transfer the company from the OTC market to the ATB
The Dhaka Stock Exchange (DSE) will inspect the premises of Excelsior Shoes Ltd - a 100% export-oriented shoemaker - to assess the operational and financial status of the company.
The Bangladesh Securities and Exchange Commission (BSEC) has recently directed the bourse in this regard.
Excelsior Shoes will be transferred from the over-the-counter (OTC) market to a new board, called the alternative trading board (ATB), once it opens on the DSE.
Eligible non-listed securities can be traded in the ATB, and all types of investors will be able to trade.
According to sources, the BSEC is working to transfer some of the OTC companies to the ATB, and some to the SME board.
Therefore, before transferring Excelsior Shoes to the ATB, the commission wants to know the company's situation.
The BSEC will take the next step after getting the inspection reports.
Back in 1996, Excelsior Shoes raised Tk15 crore from the stock market for meeting capital expenditure and working capital requirements, and for repaying bank loans.
From its listing year till fiscal 2003-2004, the company made good business.
But in FY04, despite earning a decent revenue of Tk37 crore, the company incurred a loss of Tk1.16 crore.
It again returned to making profits in the 2007-2008 fiscal year, which continued till fiscal 2010-11.
During the year, the company's revenue stood at Tk62 crore and net profit at Tk3.38.
But after FY11, the company failed to continue its business properly.
Its paid-up capital was Tk30 crore and the authorised capital was Tk100 crore.
According to the DSE, the sponsors and directors hold 6.3% shares in the company, whereas institutional investors have 23% and general investors have 70.43% shares.