Nurani Dyeing board to be restructured

Within less than five years of getting listed in the stock market, Nurani Dyeing has kept its factory shut for a long time without informing its investors.

As a result, the Bangladesh Securities and Exchange Commission yesterday decided to restructure the company's board of directors.

The dyeing company raised funds of Tk 43 crore when it got listed in 2017.

Officials of the country's two bourses found that the company's factory and corporate office had been shut for a long time and that it was providing financial reports to pretend its operations were still active, the BSEC said.

So, the stock market regulator will take action against the company's auditor.

After getting listed with the bourses, Nurani Dyeing provided just 2 per cent cash dividends in 2018, shows data from the Dhaka Stock Exchange (DSE).

During yesterday's commission meeting, the BSEC approved the initial public offering (IPO) of Sena Kalyan Insurance, which would raise a fund of Tk 16 crore from the market.

The insurer will issue 1.60 crore shares at face-value to raise the funds.

With the IPO proceeds, the company would invest in the stock market, keep deposits with banks and buy space for its office, the BSEC said in a press release.

The insurer's weighted average earnings per share for the last five years was Tk 2.65.

The BSEC also decided that 7.5 per cent of the fund would be forfeited instead of 15 per cent for those who apply twice for the IPO of Sonali Life Insurance against a bank account.

Earlier, the regulator confiscated 15 per cent of the applied funds and voided one IPO application for breaching the conditions of the consent letter.

In response to the investors' pleas, the market regulator decided to reduce the amount forfeited, the BSEC said in the press release.