The Bangladesh Securities and Exchange Commission (BSEC) has announced the withdrawal of the floor price restriction for shares of Robi Axiata Limited, the country’s second-largest telecom operator, effective Tuesday.
In a directive issued on February 6, the regulatory body stated that the floor restriction for Robi shares would be lifted the day after the record date, set for March 18.
The floor price represents the lowest price set by the securities regulator at which a stock can be traded. Earlier in January, the commission lifted the restriction for most stocks, 18 months after its imposition.
Currently, Robi shares have been trading at the floor price of Tk30 each at the Dhaka Stock Exchange (DSE).
Robi is recognized as the fifth-largest company in terms of market capitalization, accounting for 3.9% of the DSE’s total valuation with a current total market cap of Tk15,714 crore.
Previously, on March 3, the floor price was removed for the largest stock, Grameenphone (GP), followed by the removal of the floor for British American Tobacco (BAT) Bangladesh, the second-largest company at the Dhaka bourse.
After the removal of the floor restriction, GP shares witnessed a decline of over 16%, settling at Tk241.2 each, while BAT Bangladesh stocks fell by 17% to Tk430 each, consequently impacting the benchmark index of the DSE.
Financial Overview of Robi:
On February 15, Robi disclosed its financial statement and announced dividends for the year 2023.
According to the company’s statement, its revenue surged by 16% year-on-year to Tk9,942 crore in 2023, marking the highest annual turnover in its history.
Moreover, its net profit reached Tk321 crore last year, reflecting a 76% annual growth.
Robi has declared a 10% cash dividend to its shareholders for the calendar year 2023.
The multinational company is scheduled to hold its annual general meeting on April 24 to approve the dividend and audited financial statement.
Rajeev Sethi, managing director and CEO of Robi, attributed the record-setting revenue in 2023 to the supreme confidence subscribers had in the network, leading Robi to achieve the highest number of subscriptions among all operators during the year.
In 2023, Robi Axiata expanded its subscriber base by adding 43 lakh new users, reaching a total of 5.87 crores, constituting 31% of the country’s overall mobile phone subscriber base.
Additionally, the company witnessed an 8.9% growth in its data subscriber base, reaching 4.47 crores compared to the previous year, with the 4G subscriber base surging by 23.7% year-on-year to 3.57 crores.
Earlier, the telecom company had distributed a 7% cash dividend for the year 2022. Robi reported earnings per share of Tk0.61 in 2023, marking a 74% increase compared to 2022.
