Just a working day after downgrading to the Z category, Energypac Power Generation has been reinstated to its previous category B as it disbursed the declared dividend to its general shareholders for the 2022-23 fiscal.
Owing to the failure to pay off at least 80% of the declared dividend, the Dhaka Stock Exchange (DSE), the premier bourse in the country, downgraded the company to the Z category on 25 September, which effected from 26 September.
As an immediate effect of Z downgrading, last Thursday, the share price of Energypac declined over 9% at the DSE as investors preferred to sell off their holdings.
In a disclosure on Sunday, the DSE said, “Energypac will be placed in B category from existing Z category with effect from today as the company has reported disbursement of 5% cash dividend for the year ended on 30 June 2023.”
In the disclosure, the DSE requested stock brokers and merchant bankers to refrain from providing loan facilities to purchase Energypac securities between the first and seventh trading days.
After resuming trading in the previous B category, its share price on Sunday increased by 4.76% to Tk17.60 each at the DSE.
Meanwhile, the power generation company decided to pay a 5% cash dividend to its shareholders for FY23.
The dividend declared by the company was approved by its shareholders at the annual general meeting; however, the company failed to disburse the dividend to its shareholders.
To comply with the directive of the Bangladesh Securities and Exchange Commission (BSEC), the DSE decided on 25 September to downgrade 27 companies from the A and B categories to the Z category.
A day later on Thursday, Union Insurance was added to the list of Z as the insurer failed to disburse at least 80% of the declared dividend. Most of the shares that experienced a downgrade to Z have suffered price erosion due to selling pressure.
Energypac Power Generation was listed on the DSE in 2021. It incurred a loss of Tk44.83 crore in FY23.
In FY22, it made a profit of Tk7.13 crore and paid a 10% cash dividend to its shareholders.
According to its unaudited financials, in the first nine months of FY24, it made a revenue of Tk212 crore and a profit of Tk2.61 crore. During the same period of the previous fiscal year, it reported a revenue of Tk457 crore and a profit of Tk6.88 crore.
