Silco pharma recommends 10% cash dividend
Sponsors and directors will not get the dividend
Listed company Silco Pharmaceuticals Ltd has recommended a 10% cash dividend to its shareholders for the year that ended on 30 June 2020.
The dividend payout was recommended at the company's board meeting on Sunday afternoon.
However, sponsors and directors of the company will not get the dividend.
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The approval of the dividend will be finalised at an annual general meeting (AGM) slated for 24 December 2020, in Dhaka. The record date is set for 1 December.
According to the price-sensitive information released by the company, it reported earnings per share (EPS) of Tk0.80 as of June 2020, which was Tk1.41 in the previous financial year.
The company's EPS fell by 43% compared to that in the previous year.
Company officials said in the financial statement that the EPS fell in the last financial year due to the 66-day countrywide general holiday imposed to curb the coronavirus outbreak.
The company paid 2% cash and 10% stock dividends to its shareholders for the 2018-19 financial year.
In August this year, Silco announced that it is going to export medicine to Afghanistan for the first time in its history.
Seeking anonymity, a company official said they had already started exporting medicine as part of the agreement signed with Afghan trading company Zaid Elyas Adil Ltd for the next five years.
The total export value will be Tk3.22 crore and estimated profit will be 30% against the export.
Silco is also aiming to export drugs to the United States and the European Union markets. The company, listed on both bourses, is building a new unit specifically for this purpose.
Company Secretary Tingku Ranjan Sarker told The Business Standard they would set up the new unit in line with the regulations of Good Manufacturing Practice (GMP).
Silco raised Tk30 crore through initial public offering (IPO) last year. The fund is being invested in its new project in Sylhet, which will come into operation next year.
The closing price of the company's shares was Tk24.80 per share on Monday at the Dhaka Stock Exchange. The maximum price shot up to Tk40.90 per share.
Sponsors and directors jointly own 39.12% of shares of the company, while institutional investors and general investors hold 15.59% and 45.29% respectively.
