Stocks
Amidst Losses, NAGAD’s Tk 510 Crore Bond Approval
The Bangladesh Securities and Exchange Commission (BSEC) has granted final approval for the issuance of zero-coupon bonds worth Tk 510 crore by NAGAD, a mobile financial service provider.
NAGAD, which began its operations in 2018, has consistently maintained a leading position in the market. However, questions have arisen regarding the recent issuance of bonds by the company.
It has been reported that NAGAD has mobilized Tk 625 crore has been making loss so far, averaging an annual mobilization of Tk 125 crore. That is, the company is losing an average of 125 crore takas every year. Surprisingly, despite being a mobile financial institution, NAGAD has been granted approval by the BSEC to issue bonds.
When approached for comment, the Head of Public Communications at NAGAD, Muhammad Zahidul Islam, stated to Orthosongbad that it is common for large companies have losses in the beginning. This holds true even for startup companies. Companies like Amazon, Uber also made losses in the beginning. We hope to return to profitability by 2025.
The Managing Director and Spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), Mohammad Rezaul Karim, stated that the institution must adhere to regulations regarding bond approvals, which require the company to maintain sufficient liquidity and provide a profitability forecast. In the case of NAGAD, they meet the liquidity requirement, and they have presented a profitability forecast. The company incurs expenses due to various factors, including providing bonuses to customers. It is expected that they will generate income within a short period.
It is worth mentioning that private placements allow only corporate entities and eligible investors to invest in NAGAD’s bonds. The nature of the bond is transferable, redeemable, and convertible. The zero-coupon bond has a maturity of five years, with a coupon rate of 10%.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, April 25th, ended with a massive drop in Indices and Turnover from the previous working session. This information is known from DSE sources.
511 crore 43 lakh taka shares were traded on this day. 91 crore 31 lakh less tradings were done in DSE today compared to the previous workday, 23rd April , Shares worth Tk 602 crores 74 lakh shares were traded last time, Wednesday.
The benchmark DSEX lost 60.48 points or 5,518 The Shariah-based index DSES dropped 12.29 points or 1,217, and the blue-chip index DS30 decreased by 10.17 points or 1,974.
Of the issues traded, 69 advanced, 300 declined and 27 remained unchanged.
ADN Telecom Limited ranked top gainer on DSE, the share price increased by Tk 9.60 paisa or 8.66 percent. On this day, the share was last traded at Tk 120.50 paisa.
Bata Shoe Company Bangladesh Limited ranked top loser on the DSE, the share price dropped by Tk 36.9 paisa or 3.77 percent. On this day, the share was last traded at Tk 941.00 paisa.
DSE topped on trade is Orion Infusion Limited 31 crore 69 lakh takas of company shares have been traded.
A total of 35 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 26 lakh 36 thousand 734 shares of the companies were traded. The financial value of which is 16 crore 61 lakh taka
One of the Listed companies, Bangladesh National Insurance Company Limited has recommended 20% Cash Dividend for the year ended December 31, 2023.
In terms of financial performance, The Company has also reported EPS of Tk. 4.04 for the year ended December 31, 2023. The Company has also reported NAV per share of Tk 26.28 paisa for the year ended December 31, 2023.
The Annual General Meeting (AGM) of the company will be held on June 25, through the digital platform. The record date for this has been fixed at May 27.
One of the Listed companies, Bata Shoe Limited has recommended 105% Final Cash Dividend (Total 435% Cash Dividend for the year ended December 31, 2023 inclusive of 330% Interim Cash Dividend, which has already been paid) for the year ended December 31, 2023
In terms of financial performance, The Company has also reported EPS of Tk. 29.31 for the year ended December 31, 2023. The Company has also reported NAV per share of Tk 237.93 paisa for the year ended December 31, 2023.
The Annual General Meeting (AGM) of the company will be held on July 16, through the digital platform. The record date for this has been fixed at May 16.
