Delta Spinners gets 2 months to comply with 30% shareholding rule
As of 31 January 2022, the sponsors and directors jointly held 20.51% shares in the company
Bangladesh Securities and Exchange Commission (BSEC) has given two months to Delta Spinners Ltd to fully comply with the rule that requires sponsors and directors to jointly hold a minimum of 30% of a company's shares.
The securities regulator sent a letter to the company in this regard on Tuesday. The company's sponsors and directors will have to buy the shares within two months of issuance of the letter.
Earlier this month, the company sought time from the commission to comply with the rule.
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As of 31 January 2022, the sponsors and directors jointly held 20.51% shares in the company, while institutional investors held 6.52% and the public held 72.97% shares.
Jatiya Party leader Mostafa Jamal Haider established the spinning mill in Mymensingh in 1994. The company was listed on the stock market in 1995.
It was performing well until the early 2010s as it sold enough yarn to make a profit that provided dividends to its shareholders.
The company issued right shares three times – in 1996, 2010, and 2014 – at the bourses to finance its business expansion.
Share multiplication helped Delta Spinners increase its paid-up capital to Tk166 crore.
Earlier, the company applied to the High Court to arrange its deferred annual general meetings for two years.
In the October-December period of 2021, the company's loss per share was Tk0.01.
