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Shares of British American Tobacco Bangladesh Company (BATBC) jumped 12.62 per cent to close at Tk 1,700.30 on Thursday following its hefty dividend declaration.
The multinational tobacco company saw its share price increase by Tk 190.60 each, as it declared 300 per cent final cash dividend, raising the total cash dividend to 600 per cent, and 200 per cent stock dividend for the year ended on December 31, 2020.
It is the highest dividend declaration by the company since its listing with the stock exchange back in 1977, Dhaka Stock Exchange (DSE) officials said.
In 2019, the company disbursed 400 per cent cash dividend. It paid 500 per cent cash and 200 per cent stock dividends in 2018, and 600 per cent cash dividend in 2017, according to the data available with the DSE.
On Thursday, BATBC also dominated the turnover chart on the prime bourse, with more than 1.56 million shares worth over Tk 2.67 billion changing hands.
Market insiders said the multinational tobacco company saved the market from a big fall as the heavyweight made significant contribution to the index.
BATBC contributed more than 100 points to the DSE core index alone, according to data from amarstock.com, a stock market data analyst.
BATBC is the third largest listed company on the DSE in terms of market capitalisation -- its market-cap stood at over Tk 271 billion -- after Grameenphone (Tk 511.6 billion) and Walton Hi-Tech Industries (Tk 323.58 billion) as on Thursday.
The board of directors of the British American Tobacco has recommended 300 per cent final cash dividend (total dividend 600 per cent, including 300 per cent interim cash dividend which has already been paid) and 200 per cent stock dividend for the year ended on December 31, 2020, the company said in a filing with the DSE on Thursday.
The annual general meeting (AGM) will be held on March 28 using a digital platform. The record date is on March 3.
The tobacco company has also reported earnings per share (EPS) of Tk 60.48, net asset value (NAV) per share of Tk 188.89 and net operating cash flow per share (NOCFPS) of Tk 83.44 for the year ended on December 31, 2020 as against Tk 51.37, Tk 198.85 and Tk 86.61 respectively for the same period of the previous year.
BATBC has also informed that 200 per cent stock dividend was declared to achieve the optimum capital base considering the size and the growth of the company's business.
The sponsor-directors own 72.91 per cent stake in the company, while government owns 0.64 per cent, institutional investors 12.04 per cent, foreign investors 11.14 per cent and the general public 3.27 per cent as on January 31, 2021, the DSE data shows.