Beximco Holdings to buy Tk500cr shares of Beximco

Beximco Limited's corporate director Beximco Holdings announced to buy 3 crore shares worth around Tk500 crore of the company at the current market rate at Dhaka Stock Exchange (DSE), according to an announcement Tuesday.

As per the announcement, the corporate director will buy 3.42% shares of Beximco Ltd within the next 30 days. Beximco Ltd has been in the textile business.

Mohammad Asad Ullah, company secretary of Beximco Limited, told The Business Standard, it is a strategic decision of the holding company to buy the shares.

But he did not elaborate on the strategic plan.

As the decision was revealed on the DSE website, Beximco shares – driven by a keen interest of the investors – topped the turnover chart with Tk161.78 crore trading at DSE Tuesday. The trading amounted to 12% of the total DSE turnover on that day.

But the share price fell 0.57% and closed at Tk174.60 at the end of the Tuesday trading session at DSE.

As per the annual report of the 2019-20 fiscal year, Beximco Holdings have 2.88% shares in Beximco Limited. After the 3 crore share purchase, its holding will increase to 6.30%.

Beximco Limited's paid-up capital is Tk876 crore. Out of the total shares, sponsors and directors of the company hold 30.55%, while institutional investors have 26.95%, foreign investors have 1.27% and general investors have 41.23% share.

In the first quarter of the current fiscal year, its sales jumped 169% to Tk1,757.58 crore, while profit also grew by 28 times to Tk360.53 crore.

Beximco Limited recommended a 35% cash dividend to the shareholders for the last fiscal year, which was the highest since 2010.

Explaining the growth, the company in its financial statement said exploring new markets and product lines in textile, and execution of more orders helped. Old orders were also executed in the current year due to the Covid-19 pandemic, which impacted revenue and raised the profit.