Three firms get BSEC nod for issuing bonus shares
From now on, a company needs to secure BSEC approval before issuing bonus shares
Summary of the bonus shares:
- Advent Pharma
- Dividend: 2% stock
- Record date: 27 Feb - Saif Powertec
- Dividend: 6% stock
- Record date: 28 Feb - Quasem Industries
- Dividend: 10% stock
- Record date: 1 Mar
The Bangladesh Securities and Exchange Commission (BSEC) has approved the issuance of bonus shares by Saif Powertec, Advent Pharma, and Quasem Industries for 2020-21 fiscal.
But it has rejected Dominage Steel Building Systems' proposal for issuing bonus shares.
On Tuesday, the four companies published the information on the websites of both stock exchanges.
According to the disclosures, the three listed firms have recommended and approved bonus shares as stock dividends for FY21 for utilising their retained earnings as capital for business expansion.
Earlier, any listed firm was able to issue bonus shares without any restrictions.
But recently, the BSEC has imposed some restrictions on unusual stock dividends to ensure proper justification for issuing bonus shares.
From now on, a company needs to secure BSEC approval before issuing bonus shares.
Also, any listed firm may issue bonus shares or declare stock dividends only for balancing, modernisation, rebalancing, and expansion (BMRE), regulatory requirement to raise capital, and for profitable investment or reinvestment in the company.
Saif Powertec
The power & material handling solutions provider has got the approval for issuing a 6% stock dividend for FY21.
For the shareholders to avail bonus shares, the company has fixed 28 February as the record date.
It had also approved a 10% cash dividend for FY21.
In FY21, its consolidated earnings per share (EPS) rose by 62% to Tk1.75 from Tk1.08 in the previous 2019-20 fiscal year.
Quasem Industries
The country's largest dry cell battery manufacturer got the BSEC consent to issue a 10% stock dividend.
The company had approved the dividend in its annual general meeting (AGM). The record date for the dividend is 1 March.
Advent Pharma
The company got approval for issuing a 2% stock dividend, and the record date has been fixed for 27 February.
In October last year, its board had also recommended a 2% cash dividend for the shareholders.
Dominage Steel Building Systems
The BSEC has rejected a 5% bonus share proposal of the pre-engineered steel buildings maker - Dominage Steel Building Systems.
Earlier, the company had proposed a 5% cash dividend only for its general shareholders, and a 5% stock dividend for both its general shareholders and sponsor-directors.
After the dividends were approved by the shareholders in an AGM, the company sought permission from the BSEC for final approval. But on Tuesday, the company informed that the commission rejected its proposal for issuing bonus shares.