DSE upgrades categories for 2 firms as dividends disbursed

The Dhaka Stock Exchange (DSE) yesterday upgraded two listed firms from the Z category to their respective categories based on dividend payments, as the declared dividends were disbursed. 

The firms are ACME Pesticides and Beach Hatchery, according to disclosures published by the DSE.

Previously, on Monday, the bourse upgraded the categories for Advent Pharmaceuticals, Shepherd Industries, and Union Insurance after they disbursed due dividends to their shareholders.

Despite shareholders' approval, these firms had initially failed to disburse the declared dividends within the time stipulated by the listing rules. As a result, at the end of September, the bourse downgraded these companies to the Z category for failing to disburse at least 80% of the declared dividends within the required timeframe.

Following their downgrade to the junk category, the companies quickly disbursed the dividends and submitted compliance reports to the DSE. With the approval of the Bangladesh Securities and Exchange Commission, the bourse has now restored the companies to their respective categories based on the dividend payments.

If a company fails to pay any dividend, it is placed in the Z category. Companies that pay below a 10% dividend are placed in the B category, while those that pay more than 10% are placed in the A category.

Yesterday, the companies published separate disclosures regarding the change in their categories, effective from 27 October. 

Stock brokers and merchant bankers have been requested to refrain from providing loan facilities for purchasing the securities from the first to the seventh trading day.

In a disclosure, ACME Pesticides said it had been moved from the Z category to the B category after disbursing a 0.10% cash dividend to its shareholders for the financial year ending 30 June 2023. 

Beach Hatchery was also placed in the B category after disbursing a 2% cash dividend to its shareholders for FY23.