The Financial Express

FY'18 witnesses increased issuance of stock dividend

| Updated: July 02, 2018 11:14:52

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Some 148 companies listed with the Dhaka Stock Exchange (DSE) have increased their paid-up capital through issuing stock dividend worth over Tk 42.77 billion in the outgoing fiscal year (FY) 2017-18.

The amount would be 125 per cent higher than the previous FY.

The companies issued 4.27 billion bonus shares during the period, according to DSE information. Many of the companies also issued cash dividend in the FY.

A total of 117 companies had issued more than 1.88 billion bonus shares to increase their paid-up capital by Tk 18.98 billion in FY 2016-17.

A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout.

During the FY 2017-18, the textile sector topped the chart of the sectors which issued bonus shares.

A total of 26 companies from the textile sector issued bonus shares in FY 2017-18.

The textile sector has the highest number of companies listed with both the stock exchanges.

Presently, a total of 50 textile companies are listed with the two bourses in the country and some other textile companies are set to be listed on completion of the IPO (initial public offering) subscription process.

A total of 23 of engineering sector companies issued bonus shares in FY 2017-18. The sector comprises of 36 companies listed with the stock exchanges.

Some 23 companies of the insurance sector also issued bonus shares in the outgoing FY.

Of other sectors which issued bonus shares in the FY 2017-18, 21 companies were from banking, 12 from financial institutions, 12 from pharmaceuticals and chemical sector, six from food & allied sector, six from fuel & power sector and six from miscellaneous sector.

Of other companies which issued bonus shares in the FY 2017-18, one was from jute sector, two from real estate sector, one from cement sector, four from IT sector, two from tannery sector and three from ceramic sector.

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