Beximco Synthetics again seeks to delist stock

Beximco Synthetics, a textile unit of Beximco Group, has again applied to the securities regulator for exiting from the stock exchanges.

The company, a producer of polyester yarn that suffered a long spell of losses, sought permission from the Bangladesh Securities and Exchange Commission (BSEC) to delist stock from the Dhaka Stock Exchange and Chittagong Stock Exchange, said the company in a filing with the bourses on Wednesday.

According to the company’s exit plan, it will buy back 55,778,623 securities from its general shareholders. But the company is yet to fix the buying prices of the securities.

The exit plan outlined by the BSEC in December last year states that if the market value of a security is below the face value, then the entrepreneurs have to buy the shares at the face value.

The company’s share trading remained suspended since September last year, citing an order from the BSEC. The regulator ordered the DSE and CSE to suspend the trading of the company’s shares following its delisting proposal.

During the suspension, its share price was Tk 8.40

As per the rules, if the company buys shares from investors at a face value of Tk 10, it needs around Tk 55.78 crore.

Beximco Synthetics produced and sold drawn textured yarn, a type of polyester yarn, but its business was hampered by the reduction of duties on the cheaper imported product, the company said earlier.

“Unfortunately, despite its best efforts, the company could not maintain targeted production and profitability during the last seven years which resulted in the company accumulating huge losses. This has resulted in the shares of the company being traded below face value for a number of years,” it added.

Finally, the company ceased production and shut down the plant. It retrenched all the workers and most of the officers and staff after paying all their dues as per law, according to the statement.

It got listed with the bourses in 1993. Of the total shares of the company, sponsor-directors hold 35.67 per cent, institutions 24.09 per cent, foreigner investors 0.02 per cent and general investors 40.22 per cent.