The Financial Express

People’s Leasing worst loser

FE Report | Published: July 10, 2019 10:29:07 | Updated: July 12, 2019 10:27:57

People’s Leasing worst loser

People’s Leasing and Financial Services Limited (PLFSL) became the worst loser on Tuesday following the government's approval to the company's liquidation over its broken financial state.

The share price of the PLFSL, presently a 'Z' category company, closed at Tk 3.60 each with a loss of 10 per cent or Tk 0.4 on the Dhaka Stock Exchange (DSE).

426,186 shares of the PLFSL changed hands through 134 trades executed on the DSE. But the turnover stood at only Tk 1.53 million due to lower price of the shares.

The company's shares have been traded below face value of Tk 10 for around last 13 months due to investors' less interest following the company's losing state.

The company has reported a consolidated loss of Tk 5.52 per share for the year ended on December 31, 2018 as against the loss of Tk 26.68 for same period of the previous year.

On June 27 last, the ministry of finance (MoF) gave its nod to the proposal of liquidating the PLFSL considering fragile financial statement.

This will be first liquidation, a process of concluding business and distributing its assets to claimants, of a financial institution in the country.

The company did not recommend any dividend after 2014. During 2005 to 2014, the company issued only stock dividend with an effort of increasing its paid-up capital.

The company's paid-up capital is above Tk 2.85 billion, according to DSE information.

The majority amount of shares of the PLFSL, which was listed in 2005, are held by the general investors. The general investors hold 67.84 per cent shares of the PLFSL.

On Tuesday, Global Insurance was the number two loser after losing 9.21 per cent to close at Tk 27.60 each on the DSE.

Among other top losers, the share price of R.N. Spinning Mills declined 8.04 per cent, Runner Automobiles 6.54 per cent, Monno Ceramic Industries 6.22 per cent, Northern Genaeral Insurance 6.0 per cent, and Northern Jute Manufacturing 5.89 per cent.


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