Dacca Dyeing moves to ‘B’ category

Dacca Dyeing & Manufacturing Company has been shifted from ‘Z’ to ‘B’ category at the Dhaka bourse.

The development came as the publicly traded company provided one per cent cash dividend to shareholders after a five-year gap.

According to a disclosure made to the Dhaka Stock Exchange, the change is effective from Thursday.

Earlier, Dacca Dyeing paid 10 per cent stock dividend to its investors in 2015.

As per rules, if a company does not pay dividend for a year, it will be placed under ‘Z’ category at the bourses.

Due to the change in category, the eligible investors will not be able to avail loan facility to purchase the company’s share.

The company, in a separate disclosure, requested the stock brokers and merchant bankers to abstain from providing loan facilities to purchase security of the company in the next 30 trading days.

The textile manufacturing company witnessed 3.7 per cent rise in its share price at the Dhaka bourse on Thursday. Each share was traded at Tk 28.

According to the DSE data, the company’s earnings increased 375 per cent in the third quarter (January-March) of the financial year 2020-21.

Its earnings per share (EPS) stood at Tk 0.19 in the quarter, against Tk 0.04 of January-March of previous year.

On the other hand, for the first nine months (July-March) of FY21, the EPS of the company increased more than 15 times.