Regulatory body the Bangladesh Securities and Exchange Commission (BSEC) has suspended trading of the shares of Beximco Synthetics Ltd after the company applied to be delisted from the stock market.
The suspension came into effect from today (Tuesday) after the company’s board of directors decided to delist its shares voluntarily from the Dhaka and Chattogram stock exchanges and written to the BSEC in this regard.
It is learned that Beximco Synthetics was approved by Registrar of Joint Stock Companies & Firms (RJSC) on July 18, 1990 as a public limited company for the production and sale of draw texturizing yarn (DTY).
The company was listed on the Dhaka Stock Exchange (DSE) on November 4, 1993 and on the Chittagong Stock Exchange (CSE) on November 6, 1995.
Since its inception, the company had been making good profits by importing DTY and had regularly paid dividends to shareholders from 1996 to 2013. However, the reduction in tariffs on DTY imports has made it difficult for the company to conduct business. As a result, the company has not been able to pay dividends since 2013.
The company had not been able to maintain the desired production and profitability in the last seven years despite its best efforts resulting in huge losses that forced the company to stop production and close down the plant.
