The Dhaka Stock Exchange (DSE) has decided to review the performances of 13 listed companies due to their failure in declaring dividends for last five years.
"The performances of the following listed securities will be reviewed by DSE in line with regulation 51(1) (a) of the Dhaka Stock Exchange (Listing) Regulations, 2015," said a statement posted on the DSE website on Tuesday.
The companies are: Meghna Pet Industries, ICB Islamic Bank, Dulamia Cotton Spinning Mills, Samata Leather Complex, Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk Industries, Kay & Que (Bangladesh), Savar Refractories, Beximco Synthetics Jute Spinners and Shinepukur Ceramics.
The DSE statement said the issuers have failed to declare dividend (cash/stock) for a period of five years from the date of declaration of last dividend or the date of listing with the exchange.
According to DSE listing regulation 51(1)(a), if any issuer fails to declare dividend (cash/ stock) for a period of five years from the date of declaration of last dividend or the date of listing with the exchange, the listed securities may be de-listed.
Following the news, the share prices of these companies witnessed sharp fall on Tuesday.
The share price of Meghna Pet Industries plunged by 9.09 per cent to close at Tk 14 each, ICB Islamic Bank's share price also fell 8.16 per cent to close at Tk 4.50 each, Dulamia Cotton's share price declined 9.52 per cent to close at Tk 26.60 each.
Samata Leather's share price dropped by 8.37 per cent to close at Tk 49.20 each, Shympur Sugar Mills' price lost 9.74 per cent to close at Tk 32.40 each.
The share price of Zeal Bangla Sugar fell 9.58 per cent to close at Tk 39.60 each, Imam Button's share price declined 9.97 per cent to close at Tk 26.20 each, Meghna Condensed Milk's share price fell 7.82 per cent to close at Tk 16.50 each.
The share price of Kay & Que fell 5.65 per cent to close at Tk 5.65 each, Savar Refractories' price plunged 9.92 per cent to close at Tk 118.90 each.
The share price of Beximco Synthetics also fell 7.22 per cent to close at Tk 7.70 each, Jute Spinners' share price fell 9.41 per cent to close at Tk 104.90 each while the share price of Shinepukur Ceramic plunged 7.22 per cent to close at Tk 16.70 each.
After reviewing the companies' performance, the management of the DSE is likely to take tough action like delisting from the trading board, said a DSE director.
On July 18 last, the DSE delisted Rahima Food and Modern Dying & Screen Printing as the share prices of these companies surged abnormally despite the operations remaining closed for more than three years.
According to the Listing Regulations-2015, listed securities may be delisted if it had stopped commercial operations, productions or explorations for three consecutive years.
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