Foreign Investors leaving Delta Brac Housing over change management and dull future projection


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Foreign Investors leaving Delta Brac Housing over change management and dull future projection

Foreign investors lost confidence to Delta Brac Housing (DBH) new management as well as fortune of local capital market as they left the company with selling a good chunk of their share.

DBH’s 42.08 percent share had been holding by foreign investors by the end of December 2019 which came down to 21.99 per cent in February 2021.

Foreign investors started leaving company share after departure of its immediate past Managing Director QM Shariful Ala and joining by Mr. Nasimul Baten.

QM Shariful Ala has been the Managing Director of Delta BRAC Housing (DBH) for more than two decades. Kazi Mohammad Shariful Ala, better known as QM Shariful Ala, joined Non-Bank Financial Institution (NBFI) DBH Limited as Managing Director (MD) almost two decades ago in 1998. During his tenure, DBH became the leading financing institution in the country’s housing sector. Attracted by the company’s success, foreign investors have also invested significantly in DBH shares. At the end of June 2020, Shariful Ala resigned as the MD of DBH. In September, two months after he stepped down, four foreign investors sold 16.56 percent of their holdings in DBH. After the resignation of the long-serving MD, the issue of selling shares to foreigners has also given rise to discussions among market participants.

A review of DBH’s shareholding data shows that in December 2015, foreign investment in the company was 13.98 percent. From there, the rate of foreign ownership in the company’s shares stood at 42.06 percent at the end of last year, rising steadily.

A review of DBH’s share sales statistics shows that local and institutional investors bought shares sold to foreigners. As of the end of October, 228 companies had 12.56 per cent shares and 8,512 individuals had 14.18 per cent shares.

Delta BRAC Housing and Finance Corporation Limited (DBH), a listed financial sector company, has declared a dividend for its shareholders. The company will pay a 30 percent dividend for the year ended December 31, 2020. 15 percent cash and 15 percent bonus.

The company’s dividend decision was taken at a meeting of the company’s board of directors on Monday (March 22nd) after reviewing the audited financial statements for the last year. This information has been known from the company sources. In the last year, the company’s earnings per share (EPS) has been 5 to 7 paise. Last year, the company’s EPS was 8 rupees 96 paise.

On December 31, 2020, the company’s net asset value per share (NAVPS) was 41 rupees 72 paise. The company’s Annual General Meeting (AGM) will be held on May 8, at 11 am through the digital platform. The record date has been set for April 13.

According to the company’s financial report, at the end of the third quarter on September 30 this year, DBH’s total assets stood at Rs 5,06 crore. Of this, loans and advances amounted to Tk 4,273 crore. The deposit of the company is 4 thousand 574 crore rupees. In the first three quarters of this year, DBH’s after-tax profit was Tk 54.69 crore. Where the profit in the same period of the previous year was 72 crore. At the end of last year, the default rate on loans disbursed by DBH was 45 percent.






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