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 Market DSE, Bourse on the last working day of the week, 25th July, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
497 crore 34 lakh taka shares were traded on this day. 337 crore 97 lakh more tradings were done in DSE today compared to the previous workday, July 24th, Shares worth Tk 159 crores 37 lakh shares were traded last time, Wednesday.
The benchmark DSEX increased 62.81 points or 5,413 The Shariah-based index DSES added 13.81 points or 1,183 and the blue-chip index DS30 gained by 24.25 points or 1,932.
Of the issues traded, 286 advanced, 66 declined and 40 remained unchanged.
Techno Drugs Limited ranked top gainer on DSE, the share price increased by Tk 3.80 paisa or 9.87 percent. On this day, the share was last traded at Tk 42.30 paisa.
Rangpur Foundry Limited ranked top loser on the DSE, the share price dropped by Tk 5.40 paisa or 2.98 percent. On this day, the share was last traded at Tk 175.70 paisa.
DSE topped on trade is Square Pharmaceuticals PLC 35 crore 9 lakh takas of company shares have been traded.
A total of 28 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 82 lakh 94 thousand 29 shares of the companies were traded. The financial value of which is 21 crore 92 lakh taka
One of the listed companies, Eastland Insurance Company Limited discloses its financial reports for the second quarter, (April – June 24).
The company’s earnings per share (EPS) Tk 0.27 paisa in Q2 of the current financial year (April – June 24). EPS was Tk. 0.41 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. NAV per share was Tk. 20.85 as of June 30, 2024.
One of the listed companies, Shahjalal Islami Bank PLC discloses its financial reports for the second quarter, (April – June 24).
The company’s Consolidated earnings per share (EPS) Tk 1.50 paisa in Q2 of the current financial year (April – June 24). Consolidated EPS was Tk. 1.50 for January-June 2024 as against Tk. 1.47 for the same period last year. EPS was Tk 0.80 paisa during the same period last year. Consolidated NAV per share was Tk. 20.85 as of June 30, 2024.
