Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
A total of 154 listed companies increased their capital by over Tk 35.57 billion through issuing stock dividends in the outgoing year, 27 per cent up from the previous year.
These companies have issued more than 3.55 billion bonus shares in 2018, according to the Dhaka Stock Exchange (DSE) data.
In 2017, a total of 142 listed companies raised their capital by over Tk 27.91 billion through issuing more than 2.77 billion bonus shares.
This year, stock dividends were mostly disbursed by small cap companies in the textile, financial institutions and insurance sectors.
More than 50 per cent companies of these sectors issued stock dividends during the year.
Also, 20 listed banks, out of 30, issued stock dividend in 2018.
A stock dividend is a dividend payment made in the form of additional shares rather than a cash payout.
The companies may decide to distribute this type of dividend to shareholders if the company's availability of liquid cash is in short supply.
Of 154 companies which issued stock dividend in 2018, 20 were from banking sector, 12 from financial institutions sector, 23 from engineering sector, six from food & allied sector, seven from fuel & power sector, and 29 from textile sector.
Of the remaining companies, 14 were from pharmaceuticals & chemical sector, one from services & real estate sector, two from cement sector, four from IT sector, two from tannery sector, three from ceramic sector, 24 from insurance sector, and seven from miscellaneous sector.
Presently, a total of 311 companies, other than mutual funds, treasury and corporate bonds and debentures, are listed with the stock exchanges.