The Bangladesh Securities and Exchange Commission (BSEC) has granted approval for a 250% stock dividend, a reduction from the initially declared 700%, for Himadri Limited, an SME platform company under the Ejab Group. The company had earlier announced a record dividend of 700% stock and 10% cash for the fiscal year 2022-23. An anonymous official from the company revealed that the BSEC approval was obtained after applying for consent, and the company has now sought a review of the decision by submitting the required documents.
The company’s objective was to increase its paid-up capital, aligning with BSEC requirements for transitioning to the main market. Failure to consider this adjustment might result in a delay in the process of entering the main market, the official expressed. The company is set to hold its annual general meeting on December 27, with a record date of December 21.
The stock dividend, sourced from retained earnings rather than capital or revaluation reserves, proposes to provide shareholders with seven new Himadri shares for each existing share, effectively increasing the paid-up capital sevenfold from its current Tk75 lakh. The last closing share price of the company was Tk6,999 on the Dhaka Stock Exchange.
Established in 1974, Himadri Limited specializes in offering cold storage facilities for agro-based products, primarily potatoes, with six potato cold storage located in various regions. The company transitioned to the SME platform in September 2021 from the over-the-counter market, where its shares were last traded on March 8, 2014.
According to price-sensitive information, the company’s earnings per share witnessed a 43% year-on-year increase, reaching Tk7.62 by the end of FY23.
