Safko Spinning (SAFKOSPINN) stocks yesterday saw a price hike of 13% each at Dhaka Stock Exchange as the company recommended stock dividend of 10% and expressed intention to issue rights shares.
The recommendation came at the company’s board meeting on Sunday, considering the financial statements of last year.
Having no price limit on the trading of the stock following the corporate disclosure, investors took opportunity to make the best of the company’s strategic moves,
which resulted in trade value of Tk5.6 crore for the spinning mill at the bourse.
The “A” category stock, aside from the stock dividend, also decided to issue rights shares (3R:2) that will allow an investor to issue three of the company’s shares at its face value of Tk10 each against holdings of every 2 shares.
The issue of bonus shares having record date fixed on March 20 is subject to approval by the shareholders and the regulatory authorities while the record date for entitlement of the proposed rights shares to be notified later after obtaining approval from BSEC, according to DSE disclosure.
The company earlier reported its unaudited third quarterly (July-Sept) profit to be Tk75.8 lakh after tax while it was Tk54.1 lakh during the same period a year earlier.
Latest third quarterly report showed the fall in financial expense drove up profitability with the company seeing a slight rise in sales.
The company is yet to make its last year’s financial reports available online. However, the DSE disclosures show yearly earnings per share is Tk1.14 while it was Tk1.05 a year ago, registering a rise of 8.6% yearly.
As of end September last year, the company had an accumulated loss of Tk10.1 crore.
