Confidence Cement has recommended stock dividend, though a listed company cannot raise capital through bonus shares without holding minimum 30 per cent shares jointly by the sponsor-directors.
The company's board of directors has recommended 15 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2019.
According to information of Dhaka Stock Exchange (DSE), the sponsor-directors of the Confidence Cement hold 29.88 per cent shares as on September 30 last.
Following the company's declaration of stock dividend, the DSE issued a query letter on Sunday to the company regarding compliance of holding minimum 30 per cent shares jointly by the sponsor-directors.
Meanwhile, Confidence Steel, one of the corporate directors of the Confidence Cement, expressed intension on Sunday to purchase 0.1 million shares from public market at prevailing market price.
On completion of purchasing the said amount of shares within 30 working days, the holding of the company's sponsor-directors will be 30 per cent.
Confidence Cement, presently an 'A' category company, was listed on the stock exchanges in 1995.
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