BSEC opens probe into New Line Clothings

The Bangladesh Securities and Exchange Commission (BSEC) has opened an investigation into the unpaid dividend of New Line Clothings Limited.

A probe panel headed by the BSEC Deputy Director Md Sirajul Islam has been formed and asked to report back by 30 working days, the order was issued on Wednesday.

In the three-member committee, the other two members are BSEC Assistant Director Md Mehedi Hasan Rony, and Dhaka Stock Exchange Deputy Manager Gias Uddin.

“We want to investigate the company’s dividend payout. If there are any irregularities, we’ll take action as per security rules,” said a BSEC official.

The company declared a 12.25 per cent cash dividend for the year ended June 30, 2021.

The company has reported that its average earnings per share (EPS) stood at Tk 1.63, net asset value per share at Tk 24.02 for the year ended on June 30, 2021 as against Tk 1.08 and Tk 23.83 respectively for the same period of the previous year.

In 2019, New Line Clothings raised Tk 30 crore from the stock market.

The company used the IPO fund for acquisition of plant & machinery (39.23 per cent), extension of factory building (25.44 per cent), partial loan repayment (30 per cent), and meeting IPO expenses (5.31 per cent), according to the IPO prospectus.

The principal activities of the company is to manufacture various kinds of woven garments for both ladies and gents including trousers, shirts, children wear, gents wear, female wear, jackets, sportswear, denim garments, and marketing.

The factory of the company is located at Mouchak in Gazipur.

On Thursday, the company’s shares price stood at Tk 46.80, down from previous session’s Tk 47.40 on the Dhaka Stock Exchange.