SS Steel allowed distribution of stock dividends

Mohammad Tarequzzaman

The Bangladesh Securities and Exchange Commission (BSEC) has finally allowed the distribution of 8 per cent stock dividend of SS Steel Limited, a listed company, on investors. Dhaka Stock Exchange (DSE) sources said. According to DSE sources, SS Steel Limited declared a 10 percent dividend for the year ended June 30, 2021. Of this, 2 percent is cash and 6 percent is stock dividend.

The company has already distributed 2% cash dividend among investors. However, in the first phase, the commission did not allow the distribution of 8 percent stock dividend. But Monday, April 18, the company was allowed to distribute 8 percent stock dividend among investors; Which is published on the DSE website.

Meanwhile SS Steel Limited Company Secretary Mostafizur Rahman said, “Under certain conditions, the commission has allowed us to distribute 8 percent stock dividend.” The conditions include that the sponsor directors must have a share lock-in for the next 3 years. And the next 3 years S.S. Steel stocks cannot pay dividends to investors. “We first applied to the commission for permission to distribute 8 per cent stock dividend among investors out of 10 per cent dividend but the commission did not allow it then,” he added. Later we again apply for permission to distribute the mentioned stock dividend; The commission then gave permission. “We have told the commission we will expand our business in the future,” he said. Trying to increase profits.

It is noted that in the year ending June 30, 2021, SS Steel’s consolidated earnings per share (EPS) was taka 2.31. At the same time last year, the company’s earnings per share was taka 1.55. On Monday, the closing price of the company was 17.50 rupees. The authorized capital of the company is Tk 500 crore and the paid up capital is Tk 304 crore. The total number of shares of the company is 30 crore 42 lakh 90 thousand; Among them, sponsor directors have a share of 31.79 per cent, general investors have a share of 57.45 per cent and institutional investors have a share of 10.76 per cent.