DSE downgrades five firms to ‘B’ category

The Dhaka Stock Exchange (DSE) has shifted five companies from ‘A’ to ‘B’ category after they failed to disburse required 10 per cent dividend to their shareholders.

The companies are - National Bank, Bangladesh Autocars, Rahima Food, National Feed Mill and National Tubes. The shift for National Tubes will come into effect on December 28 while that of the remaining four firms on December 29.

According to the BSEC rules, if an ‘A’ category company announces less than 10 per cent dividend (cash and stock) for a financial year, its category
will change.

All the five companies have announced less than 10 per cent dividend for the financial year 2020-21.

National Bank provided 5 per cent stock dividend for the year ending on December 31, 2020 while Bangladesh Autocars 4 per cent cash dividend (other than sponsors and directors), Rahima Food 1 per cent cash dividend (general shareholders other than directors), National Feed Mill 1 per cent cash and National Tube 2 per cent cash dividend for the year ended on June 30, 2021.

Earlier on December 26, AFC Agro, Daffodil Computer, Indo-Bangla Pharmaceuticals, Shepherd Industries, Simtex Industries and SK Trims and Industries shifted from A to B category.