Union Capital Limited shares yesterday closed at Tk35.3 each, registering highest gain of 8.95% on the Dhaka Stock Exchange.
The stock prices rose on the news that the company decided to issue non-convertible preference shares worth of Tk50 crore to strengthen its tier II capital, according to stock brokers.
Holders of non-convertible preference shares do not have the right to covert their holdings into ordinary shares, within a specified period of time unlike convertible preference share holders.
Shares of the company ranged between Tk34 and Tk35.6 during the trading session with a volume worth Tk78.3 lakh.
The company’s profit halved due to higher provision of Tk10.6 crore for diminution in value of investment since January 2013, said its unaudited financial reports.
The third quarter net profit of the non-banking financial institutions stood at Tk1.6 crore against Tk4.6 crore in the same period a year earlier.
Its nine-month (January-September) profit has declined to Tk2.3 crore from Tk5.3 crore in the corresponding period a year ago.
According to the unaudited reports, the company stocks have an EPS of Tk0.21 each and a price to earnings ratio of 126.07.
The company has a restated net asset value per share of Tk17 as on year-end of 2012, which is 51.2% of the current market price.
The company has given out only stock dividends since its listing in 2007 with an exception in 2011 when it paid out 10% cash dividend and same percentage stock dividend.
Sponsors-directors hold 55.97% and public 27.43% stakes in the company.
