Savar Refractories reached an advanced stage of its exit plan of purchasing shares back from institutions and general shareholders.
The Bangladesh Securities and Exchange Commission (BSEC) on Sunday gave its consent in principal.
The company's offer price of Tk 95.52 per share has been approved at the annual general meeting (AGM), said company secretary Md. Belayet hossain Khan.
"Now, our company will finalise a deal with the Dhaka Stock Exchange (DSE) to complete the rest of the job."
To exit the stock market, a company has to purchase shares from all investors other than the sponsor-directors.
Institutes held 7.15 per cent or 100,003 shares of Savar Refractories while general investors 42.14 per cent or 586,925 shares until April. The company's sponsor-directors hold 50.68 per cent shares.
Therefore, the company will have to purchase 686,929 shares at more than Tk 65.61 million to be paid to institutes and general investors.
In compliance with a regulatory directive, trading of Savar Refractories was suspended on Monday.
The offer price is set at face value, or issue price at the time of public offering, or last trade price on or before the date of trade suspension, or on before the date of delisting, as applicable, or at the net asset value as per the last audited financial statements, or the volume weighted average price for one year before the trade suspension, whichever is higher.
As per the last audited financial statement, the company's net asset value stood at Tk 95.52.
According to a directive issued in December 2020, a company can apply for an exit from the main board or alternative trading board or over-the-counter (OTC) market for various reasons, including non-operable status and loss for three consecutive years.
Savar Refractories, a Z-category company, had begun the process of voluntary delisting, being unable to carry on operation amid persistent losses on account of shrinking demand for its products.
It reported a loss of Tk 1.53 per share for January-March this year, increased from the loss of Tk 0.34 per share for the same period of the previous year.
It incurred losses amounting to Tk 1.16 million-Tk 13.05 million between FY20 and FY22.
Officials said the company's paid-up capital, Tk 13.93 million, was insufficient to compete in the market.
In a previous disclosure, the company said it had been incurring losses mainly due to the scarcity of raw materials, and a fall in local demand. The company is unable to utilise its production capacity. The low sales volume does not absorb the whole fixed and non-operating cost.
As per the valuation report approved by the board of directors, the value of the company's property, plant and equipment stood at over Tk187.17 million.
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