Miracle Industries recommends 1% cash dividend
The company’s share price rose by 36% in the last seven days although it incurred a loss of Tk13 crore and posted Tk3.62 in loss per share in the last fiscal year
Plastic packaging manufacturer Miracle Industries Limited has recommended 1% cash dividend to its shareholders for the Fiscal Year 2019-20.
However, in the last fiscal, the company incurred a loss of Tk13 crore and posted Tk3.62 in loss per share.
Despite that, its share price rose by 36% to Tk29.90 in the last seven days at the Dhaka Stock Exchange (DSE).
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Meanwhile, in the first quarter of this fiscal year, the company turned around from loss. In the July-September period, the company posted a profit of Tk6 lakh and earnings per share of Tk0.02.
However, in October 2019, the company informed investors that it had suspended factory production, showing a reason that it did not have sufficient capital to finance short-term activities.
Miracle used to produce packaging materials like polybags which were sold at local and foreign markets.
The Miracle Industries Limited was established in 1995 in a joint venture agreement with the Bangladesh Chemical Industries Corporation. Its production unit is located at Gazipur.
The paid-up capital of the company stands at Tk33.86 crore. Corporate sponsors, the Bangladesh Chemical Industries Corporation, the TSP Complex Limited, the Chhatak Cement Company Limited and the Pavarton Securities Limited hold respectively 5.28%, 8.84%, 5.88% and 2.27% share of the company.
On 8 September this year, four directors of the company expressed their intentions to transfer their entire holdings to Mehmood Equities Ltd, a private limited company registered with the joint stock.
According to its original shareholder agreement, Miracle has two groups of shareholders with BCIC in Group A holding a 20% stake of the company and the four shareholders in Group B holding a 10% stake.
However, Group B controls the company's management.
Miracle's board has seven shareholder directors. Among them, three are from BCIC and the rest from Group B.
Rafiqul Murshed, Wahiduzzaman Chowdhury, Asadur Rahman Mirza, and Pavarton Securities Ltd are the Group B shareholders. Rafiqul Murshed is also the managing director of the company.
Group A and Group B shareholders have been in conflict for the last couple of years.
Asking not to be named, a BCIC senior officer said Group B shareholders want to leave Miracle.
"But we have some allegations against them. We have also sent a letter to the Bangladesh Securities and Exchange Commission (BSEC) on this issue."
