Deshbandhu Polymer stock soars 18% despite low dividend
Its share price reaches Tk27.1 per share on the DSE
The share prices of Deshbandhu Polymer Limited surged 18.35% on Tuesday at the Dhaka Stock Exchange (DSE), despite the company recommending a relatively low 2.5% cash dividend to shareholders.
On the day, its share price increased by Tk4.2 per share than the previous day and closed at Tk27.10.
During the trading session, 86.73 lakh shares of the company were traded at Tk22.57 crore.
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Earlier, on 2 October, its board recommended a 2.5% cash dividend to its shareholders for the 2022-23FY. As per the company's decision, its shareholders will receive Tk0.25 each share.
Market insiders are surprised by the sharp rise in Deshbandhu Polymer Limited's share price on the first trading day after the company announced a nominal dividend.
While the listing rules do not restrict share price movements on the first trading day after a dividend announcement, market insiders believe that the jump in Deshbandhu Polymer's share price is suspicious, given the low dividend payout.
The company will conduct the annual general meeting on 27 November to approve the dividends and annual audited financial report. The company also set a record date on 23 October.
During FY23, the earnings per share of the company was Tk0.59, which was 25% higher than the previous fiscal.
