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Three listed companies have been transferred to Z category for failure to disburse at least 80 per cent of the dividends declared within the stipulated time.
Bangladesh Building Systems (BBS) has been relegated to Z category from B category, Beacon Pharmaceuticals to Z category from A category and Rahima Food to Z category from A category, according to a stock exchange filing.
The labeling of a stock as junk stock impacts its market value as Z category stocks have a longer settlement cycle.
The share price of Rahima Food Corporation fell 2.03 per cent to Tk 77.20 each on the Dhaka Stock Exchange on Tuesday. Beacon Pharmaceuticals slid 2.84 per cent to Tk 123.20 per share, while Bangladesh Building Systems rose 1.94 per cent to Tk 10.50 per share.
The action sends out a warning to investors about the companies. They will, however, be able to elevate their status once dividends are paid to shareholders.
BBS had declared 0.50 per cent cash dividends for FY24, Beacon Pharmaceuticals 20 per cent cash dividends and Rahima Food Corporation 10 per cent cash dividends for FY24.