VFS Thread Dyeing rejected to disburse stock dividend

The Bangladesh Securities and Exchange Commission (BSEC), the securities regulator, rejected the proposal of stock dividend payment of VFS Thread Dyeing Limited.

Seeking the regulatory nod to pay a 5 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.

Earlier in October last year, the board of directors of the company had recommended a 5 per cent stock dividend to its shareholders for the fiscal year 2021-22.

As per the securities law, no company can issue bonus shares without the approval of the BSEC.

The sewing thread goods manufacturer has an authorised capital of Tk 200 crore while its paid-up capital base is Tk 105 crore.

VFS Thread Dyeing shares were traded at its floor price of Tk 22 per share on the DSE trading floor on Tuesday.

Listed in 2028, the company’s earnings per share (EPS) stood at Tk 0.23 for the July-September period of 2022 against Tk 0.40 for the same period last year.

Its net asset value (NAV) per share stood at Tk 19.59 till September 2022 which was Tk 19.10 as on June 2020.

The sponsor-directors own a 30.77 per cent stake in the company, while institutional investors hold 8.73 per cent, foreign investors 0.04 per cent, and the general public 60.46 per cent till November 30 this year, according to DSE.