B Mirror Report: Two listed companies in the stock market VFS Thread Dyeing Limited and Techno Drugs Limited have been released from the ‘Z’ category and returned to their previous categories.
The companies were upgraded after completing the distribution of declared dividends among investors for the last fiscal year. In separate notices published on Tuesday, the main stock exchange, the Dhaka Stock Exchange (DSE), announced that textile sector company VFS Thread Dyeing has been upgraded to the ‘B’ category and pharmaceutical sector company Techno Drugs has been reinstated to the ‘A’ category.
Earlier, the two companies had been sent to the ‘Z’ category as a penalty for failing to distribute their declared dividends to shareholders within the stipulated time. According to listing regulations, companies are required to distribute dividends within 30 days of approval at the Annual General Meeting (AGM). Additionally, a directive issued by the regulator, BSEC, in May 2024 stated that if a company fails to pay at least 80 percent of its declared dividend within the specified timeframe, it will be directly downgraded to the ‘Z’ category.
In the case of VFS Thread Dyeing, the company was moved to the ‘Z’ category on September 24 last year for failing to distribute its dividend for the 2023 fiscal year on time. Although it did not declare any dividend in 2024, it announced a 0.25 percent cash dividend for general investors for the 2025 fiscal year. The dividend was approved at the AGM held on December 30 and was subsequently distributed successfully. As a result, the company will be able to resume trading in the ‘B’ category from February 15.
On the other hand, Techno Drugs, which was listed on the stock exchange in 2024, was downgraded to the ‘Z’ category on February 3 for failing to distribute its dividend. The company had pledged a 10 percent cash dividend for general investors for the 2025 fiscal year.
Although it was approved at the AGM on December 24, the company failed to distribute it within one month and faced penalties. However, after later submitting a compliance report regarding dividend distribution, the DSE restored its status and returned it to the ‘A’ category.
