Orion Infusion will now give only 20pc cash dividend
BSEC's 'no' to company's plan to provide stock dividend
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Orion Infusion has failed to get the approval from the securities regulator for its recommended 10 per cent stock dividend and now decided to convert it to cash dividend as per the advice of the regulator.
On November 14, the board of Orion Infusions had recommended 10 per cent cash dividend and 10 per cent stock dividend for fiscal year '22. Now, the total cash dividend will be 20 per cent.
On Tuesday, the Bangladesh Securities and Exchange Commission (BSEC) rejected the company's appeal for issuance of the sock dividend and said the company may declare an additional 10 per cent cash dividend instead of 10 per cent bonus shares, if permitted by related laws, rules and regulations.
Accordingly, the board of directors of Orion Infusions has now decided to convert the 10 per cent stock dividend into 10 per cent cash dividend, subject to the approval of shareholders in the annual general meeting to be held today (Wednesday).
Following the news of non-approval by BSEC, its share price plunged 8.74 per cent or Tk 42.70 each to close at Tk 446 on Tuesday, becoming the day's top loser.
Before the dividend declaration, the company's stock price had soared to as high as Tk 1,000 each until October 27.
A rumour that the company would declare rights shares had spread before the dividend declaration, but that did not happen, much to the disappointment of investors.
Since then, the company's stock price fell gradually while the latest news prompted the investors to dump their holdings.
After the dividend declaration, Orion Infusions' stock price fell by Tk 392 each or 46 per cent.
Orion Infusion reported earnings per share (EPS) of Tk 2.10 for the year ended in June 2022, up from Tk 1.37 in the previous year.
A concern of Orion Group, Orion Infusion reported a profit of Tk 42.76 million in FY22, a 53 per cent jump from the previous year.
Its first quarter EPS, however, fell 12.5 per cent year-on-year to Tk 0.63 for July-September 2022 due to a fall in revenue.
Listed in 1994, Orion Infusion disbursed 10 per cent cash dividend in 2021. In 2020, it also provided a 10 per cent cash dividend.