Covid-hit 26 listed firms downgraded to ‘B’ category

Twenty-six companies hit by the Covid-19 were downgraded to ‘B’ category from ‘A’ category, as they paid out less than 10 per cent dividend for the last fiscal year.

The coronavirus that broke out in the country in March 2020 and continued throughout 2021 wreaked havoc on their businesses, according to people familiar with the situation.

According to the DSE settlement and transactions rules, a listed company needs to declare at least a 10 per cent dividend for its shareholders to be traded under the ‘A’ category. If the company declares less than a 10 per cent dividend, it is placed in the ‘B’ category.

A company is downgraded to the ‘Z’ category if it fails to declare any dividend or does not hold an annual general meeting regularly or is not in continuous operation for more than six months.

On January 4, 2022, Alif Manufacturing Company was downgraded to the ‘B’ category from the existing ‘A’ category for recommending a 2 per cent cash dividend for the year ended on June 30, 2021.

Other companies are Dominage Steel Building Systems ( 5 per cent cash dividend), Coppertech Industries (5 per cent cash dividend), Western Marine Shipyard ( 1 per cent cash dividend), Bangas ( 4 per cent cash dividend ), Silva Pharmaceuticals (5 per cent cash dividend ), GQ Ball Pen (5 per cent cash dividend ), Bangladesh Autocars (1 per cent cash dividend ), National Feed Mill (1 per cent stock dividend), Shepherd Industries ( 2.5 per cent cash and 2.5 per cent stock dividend).

Golden Harvest Agro Industries (3 Per cent cash dividend), National Bank (5 Per cent stock dividend), National Tubes (2 per cent cash dividend), Hamid Fabrics (5 Per cent cash dividend), SK trims (5 Per cent cash dividend), Indo-Bangla Pharmaceuticals (4 per cent Cash dividend).

Daffodil Computers (6 Per cent cash dividend), AFC Agro Biotech (0.50 Per cent Cash dividend), Desh Garments (5 Per cent cash dividend) for general shareholders and (3 Per cent cash dividend) to directors, Far Chemical Industries (1 Per cent cash dividend), Bangladesh Building Systems (2 Per cent cash Dividend), Pacific Denims (1 Per cent cash and 1 Per cent Stock Dividend), Advent Pharma (2 per cent cash and 2 Per cent Stock Dividend), Evince Textiles (2 Per cent cash Dividend), IT Consultants (5 Per cent Cash dividend), Gemini Sea Food (5 Per cent Cash dividend) other than Sponsors and Directors.

“The pandemic is the main reason behind downgrading Bangladesh Autocars Company,” Bangladesh Autocars Company Secretary Shariful Islam told the Business Post on Sunday.

“The businesses were severely affected due to the pandemic in 2020 and 2021. Our all vehicles remained idle due to lockdown,” he said. “We had paid good dividend in the previous years,” he added.

Daffodil Computers Company Secretary Monir Hossain mentioned the same reason for downgrading his company. “Daffodil Computers is listed in the IT sector. But our core business is on education. All educational institutions were shut down during the corona, affecting our income significantly,” he said.

National Tubes Limited Company Secretary Pranjit Paul said our business was collapsed in 2021 due to the pandemic. “At that time, business activities halted and income was affected,” he said.