Sonali Paper shares to be traded on main boards from July 2
Both the stock exchanges have recently approved in their board meetings the company’s relisting on the main board from the OTC market
Sonali Paper and Board Mills will be relisted on the main boards of both Dhaka and Chattogram stock exchanges from July 2 this year.
As a result, the trading of the same on the over-the-counter (OTC) market was discontinued from June 28, 2020 due to the settlement of transactions.
Both the stock exchanges have recently approved in their board meetings the relisting of the company on the main board from the OTC market.
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In the first nine months of this fiscal year, the company's net profit was Tk3.46 crore, down from Tk5.23 crore, and earnings per share was Tk2.29, down from Tk3.46 in the same period of the previous year.
In the January-march quarter, the company's net profit was Tk0.53 crore and the earnings per share was Tk0.35.
The company's net asset value per share was Tk778.86 as of March 31, 2020.
In November last year, the Bangladesh Securities and Exchange Commission (BSEC) exempted Sonali Paper from having to comply with several rules.
However, both the stock exchanges rejected the regulator's approval to allow Sonali's shares to be traded in the main market as the low-profile company did not have positive net current assets in the last three financial years.
Moreover, the company's paid-up capital was below Tk30 crore – a condition that has to be met to get listed on the bourses.
Despite the refusal, the securities regulator has again allowed the company to come back to the main market.
Sonali mainly produces white and printing paper, liner paper, simplex paper, and duplex paper. Its main competitors are Bashundhara Paper Mills, Hakkani Pulp and Paper Mills, Karnaphuli Paper Mills and Magura Paper Mills.
Sonali is trying to cater to the rising demand for locally manufactured paper. At present, the company's production capacity is 45,000 kg per day and 35,000 tonnes per year.
The company started its business in 1977 and got listed on the DSE in 1985. In 2006, Younus Group took over Sonali after years of poor performance.
Sonali was ousted, along with other companies, in 2009 from the main board to the OTC market because of underperformance or nonperformance in business, failure to hold shareholders' annual general meeting over years, and converting own shares into electronic ones instead of paper certificates.
Since then, the new directors have been trying to bring the business back on track.
The company now has a reserve and surplus of Tk488.14 crore, and its paid-up capital is Tk15.13 crore.
