BSEC allows Coppertech to pay stock dividend

The Bangladesh Securities and Exchange Commission (BSEC) approved Coppertech Industries Limited's move to issue a 4% bonus share against its paid-up capital as a dividend.

Earlier on 27 October, the copper wire manufacturer's board recommended a 4% cash dividend for general shareholders and a 4% stock dividend for all shareholders for the fiscal year 2021-22.

But according to the rules, stock dividends need to get approval from the regulator if companies fail to pay out at least 10% cash dividends for two consecutive years, which Coppertech could not comply with. 

After getting consent from the BSEC, Coppertech declared the record date on 21 December to entitle the shareholders to the stock dividend.

In the FY 2022, Coppertech's revenue grew by 80% to Tk104.17crore, riding on its new product, copper continuous casting and rolling (CCR), which was introduced in September last year.

It established the plant to produce CCR through an initial public offering (IPO) fund. In 2019, it raised Tk20 crore by issuing two crore shares at face value of Tk10 each through the IPO.

In the last fiscal, Coppertech's net profit also jumped by 74% compared to the previous year to Tk11.23 crore.

In the July-September quarter of FY2023, its revenue fell by 21% to Tk12 crore. Its net profit also dropped by 46% to Tk1.04 crore over the previous year.

The company said in its financial statement filed on the Dhaka Stock Exchange website that business had decreased due to price hikes of materials, vulnerable market conditions, and devaluation of the taka against foreign currencies, especially US Dollars. 

In addition, Russia's invasion of Ukraine hampered the prospects of a post-pandemic recovery. At the same time, the subsequent higher inflation around the globe led to decreased purchase capacity of consumers and adversely influenced the company's overall profitability, it added.

Currently, its shares prices are stuck on the floor price of Tk38.40 at the Dhaka Stock Exchange.