The share prices of Berger Paints Bangladesh jumped more than 42 per cent or Tk 865 each on Tuesday as investors grabbed the shares following the company's dividend declaration.
The board of directors of the multinational paint company recommended 200 per cent cash and 100 per cent stock dividend for the year ended on March 31, 2018. It was for the first time the company recommended stock dividend for its shareholders.
The shares were traded between Tk 2,600 and Tk 3,690 each on Tuesday before closing at Tk 2,915.10 at the Dhaka Stock Exchange (DSE).
The company also topped the turnover chart with 67,612 shares worth more than Tk 196 million changing hands at the premier bourse on the day.
"Berger Paints witnessed 42.20 per cent return in a single day as investors were delighted about the year-end dividend declaration," commented International Leasing Securities, in an analysis.
The company's board also recommended increasing the authorised capital to Tk 1.0 billion from existing Tk 400 million by amending clause V of the memorandum of association and clause 5 of the articles of association, subject to the approval by the shareholders in the extraordinary general meeting (EGM).
The EGM and annual general meeting (AGM) will be held on July 17 at 9:30am and 10:00am respectively in Dhaka. The record date for entitlement of dividend is June 11.
The company's consolidated net profit stood at more than Tk 1.78 billion for the year ended on March 31, 2018 as against Tk 1.91 billion in the previous year.
The company has also reported consolidated earnings per share (EPS) of Tk 77.10, consolidated net asset value (NAV) per share of Tk 284.11 and consolidated net operating cash flow per share (NOCFPS) of Tk 63.33 for the year ended on March 31, 2018 as against Tk 82.58, Tk 249.51 and Tk 87.69 respectively for the same period of the previous year.
In 2017, the company disbursed a total of 600 per cent cash dividend.
However, the general investors own only 0.36 per cent stake in the company.
The sponsor-directors own 95 per cent, the institutional investors 2.54 per cent and foreign investors own 2.10 per cent as on April 30, 2018, the DSE data shows.
The company's paid-up capital is Tk 231.88 million and authorised capital is Tk 400 million and the total number of securities is 23.18 million.
Berger Paints Bangladesh is one of the oldest names in the paint industry, yet, it is one of the most technologically progressive companies in the country, according to the company's website information.
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