Stocks
DSE-SME platform is ahead of the stock market in dividends
215 DSE-listed companies have declared cash dividend for the fiscal year ended (June 30, 2022). Out of this, 204 shares of the company are traded in DSE. The remaining 11 companies are listed on the SME Market (Small & Medium Enterprises). According to the companies, 56 percent of the companies in the market will pay more than 10 percent dividends to investors in the fiscal year ended. On the other hand, 81 percent of companies in the SME market are paying more than 10 percent dividends to investors.
11 companies listed on the SME market have declared cash dividends of around Tk 30 crore for the financial year ended (June 30, 2022). Among the companies, 9 companies will give 10 percent or more dividends. Out of this, the highest dividend will be given by the Krishibid seed. And Nialco Alloys declared the lowest dividend. This information is known from related sources.
It is reported that among the listed companies in the SME market, Krishibid Seed, which has declared the highest cash dividend, will pay 15 percent cash dividend to investors. The amount of this dividend is Tk 4.5 crore.
Star Adhesivse is second in cash dividend payout in the SME market. The company will pay 12.5 percent dividend to investors for 2022. The amount of this dividend is Tk 2.5 crore.
Oryza Agro Industries Limited has declared 11 percent cash dividend to common investors for the fiscal year ended. The general investors of the company will get a total dividend of 3 crore 76 lakh takas.
Also, 6 companies of SME platform have declared 10 percent cash dividend to common investors. Out of this, BD Paints 4 crore 24 lakh, Achia Sea Food 2 crore 59 lakh, Mamun Agro 3 crore 50 lakh, Master Feed Agrotech 4 crore 10 lakh, Himadri Limited 8 lakh and Yousuf Flour Mills 6 lakh taka.
Among the companies that declared dividend, 6 companies declared dividend only to general investors. The founders and directors of these companies will not receive dividends. The companies are – BD Paints Limited, Mamun Agro Products, Mustafa Metal Industries, Achia Sea Food, Oryza Agro Industries & Master Feed Agrotech Limited.
Al Amin, a DSE market analyst and Associate Professor of Accounting and Information Systems Department of Dhaka University, imagined that SME companies should be given a chance if they want to do well in the market. He told Orthosongbad that SME platform companies have given better dividends compared to the DSE market. Giving a chance to small-cap companies that are making good profits will be good for the DSE market. Because there are many companies in our core market that are paying nominal dividends.
Regarding investment in SMEs, he said, the investment decision is up to the investors themselves. If the share price of SME companies is in line with the market, then price increase is not a headache. And if share price is increased by manipulation, then BSEC takes action.
Incidentally, on September 16 last year (2021), the OTC market of two stock exchanges (DSE and CSE) was canceled by the capital market regulatory body Bangladesh Securities and Exchange Commission. On that day, the commission decided to delist 29 companies and transfer 41 companies to SME and ATB (Alternative Trading Board). Later, on September 30 of the same year, trading started on the SME platform of the Dhaka Stock Exchange. On that day, trades were initially launched on DSE’s SME platform with six companies. Presently there are 15 companies listed in the DSE-SME Platform.
One of the Listed companies, National Polymer Limited has recommended 10.50% Cash Dividend for the year ended June 30, 2024.
It has reported Consolidated EPS of Tk 2.27 paisa, and Consolidated NAV per share of Tk 30.63 for the year ended March 31, 2024.
The Annual General Meeting (AGM) of the company will be held on December 18, through the digital platform. The record date for this has been fixed at October 22.
The Company also discloses its financial reports for the second quarter, (April – June 24).
As per the company’s consolidated life revenue account for April to June 2024, the excess of total income over total expenses, including claims (surplus), stood at Tk 1,394.24 million. This marks a significant increase from the surplus of Tk 823.68 million during the same period in 2023.
For the first half of 2024, from January to June, the company reported a surplus of Tk 2,177.57 million, compared to Tk 1,290.39 million in the corresponding period of the previous year.
Additionally, the Life Insurance Fund balance as of June 30, 2024, reached Tk 55,188.62 million, showing a net increase of Tk 5,892.25 million from Tk 49,296.37 million on June 30, 2023.
One of the Listed companies, Beacon Pharmaceuticals PLC has recommended 20% Cash dividend and 10% Cash Dividend to Sponsor Shareholder and Directors for the year ended June 30, 2024.
It has reported EPS of Tk 2.26 paisa, and NAV per share of Tk. 26.37 for the year ended June 30, 2024.
The Annual General Meeting (AGM) of the company will be held on December 23, through the digital platform. The record date for this has been fixed at October 27.
The Bangladesh Securities and Exchange Commission (BSEC) has removed three audit firms from its panel for their failure to secure enlistment with the Financial Reporting Council (FRC), according to a notice issued today.
The firms—A Hoque & Company, FAMES & R, and SK Barua & Company Chartered Accountants—were delisted following the FRC’s request. In December last year, the FRC published a list of enlisted audit firms and subsequently, in February, requested the BSEC to remove any firms that were not included on that list.
BSEC regulations mandate that financial statements signed by auditors outside its approved panel will not be accepted. With the removal of these three firms, the total number of audit firms on the BSEC panel has been reduced from 48 to 45.
Sources from the FRC revealed that 15-20 audit firms failed to secure enlistment last year, and approximately 45 chartered accountants are currently under restrictions imposed by the Institute of Chartered Accountants.
Although the delisted firms can no longer audit issuer companies or listed securities, they are allowed to complete audit and assurance services that were initiated before their removal, the BSEC clarified.
