Floor for Grameenphone stocks to be lifted on 3 March

The floor price restriction on stocks of Grameenphone is set to be withdrawn on 3 March, according to a directive issued by the Bangladesh Securities and Exchange Commission (BSEC) on 6 February.

The directive stated that the floor restriction on Grameenphone shares would be removed after the record date, which was scheduled for 29 February.

The floor price is the lowest price set by the securities regulator at which a stock can be traded. The BSEC in January lifted the floor price of most stocks 18 months after introducing it.

Currently, Grameenphone shares are stuck on the floor price at Tk286.60 each at the Dhaka bourse since September 2022.

Currently, Grameenphone holds the title of the largest company in terms of market capitalization, representing 9% of the Dhaka Stock Exchange's total market capitalization. Grameenphone's current total market capitalization is Tk38,700 crore.

Market insiders pointed out that being the largest stock on the Dhaka Bourse, any fluctuations in the price of Grameenphone significantly impacted the overall index movement.

According to its shareholding reports for January 2024, Telenor Mobile Communication AS, sponsor of Grameenphone, holds 55.80% share, while another sponsor Grameen Telecom holds 34.20% and the rest 10% of shares are held by the institutional investors, foreign investors and the general investors.

On 5 February, Grameenphone declared a 125% cash dividend for its shareholders for 2023, which is the lowest since 2010.

The dividend payout ratio for 2023 represents 51.03% of its total profit. In 2022, it had paid 98.72% of its total profit.

The annual general meeting (AGM) for approval of the announced dividends and financials has been scheduled for 2 May this year.

According to its audited report for 2023, the operator registered a 9.90% growth in profit compared to 2022.

Its net profit for 2023 stood at Tk3,307 crore, which was Tk3009 crore a year ago. The earnings per share (EPS) stood at Tk24.49 for 2023, up from Tk22.29 in 2022.

The report says its revenue increased by 5.51% to Tk15,870 crore, which was Tk15,040 crore in 2022.

The Grameenphone said in its price-sensitive statement, its revenue grew due to a higher mobile communication revenue, which was driven by higher voice, and data services, and partly offset by lower bundle service revenue.