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BSEC rejects Orion Infusion’s stock dividend payment plea

Staff Correspondent
28 Dec 2022 00:04:22 | Update: 28 Dec 2022 00:04:22
BSEC rejects Orion Infusion’s stock dividend payment plea

The Bangladesh Securities and Exchange Commission (BSEC), the securities regulator, yesterday declined a bonus dividend payment proposal of Orion Infusion Limited.

Seeking the regulatory nod to pay a 10 per cent stock dividend to shareholders for the fiscal year ending in June 2022, the listed company, earlier, had submitted a proposal to the BSEC, according to a DSE filing on Tuesday.

Before on November 14 this year, the board of directors of the company recommended a 10 per cent cash and a 10 per cent stock dividend to shareholders for the fiscal year 2021-22.

Rejecting the bonus dividend payment proposal, the BSEC said for the best interest of investors, the company should declare an additional 10 per cent cash dividend rather than giving the 10 per cent stock dividend.

Meanwhile, the board of directors of the pharmaceutical and medicine manufacturing company decided the same day to pay a 10 per cent cash dividend instead of the previously declared 10 percent stock to comply with the regulatory order.

The listed company is slated to hold its annual general meeting (AGM) today where the dividend payment issue is expected to get approved.

The record date of December 4, however, would remain unchanged, the DSE filing read.  As per the securities law, no company can issue bonus shares without the approval of BSEC.

Orion Infusion shares closed at Tk 446 per share on the DSE trading floor on Tuesday which was 8.7 percent lower than the closing price of Tk 488.7 in the previous trading session. With that price depreciation, the company became the top sufferer at the DSE yesterday.

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