Monno Jute declares 350pc stock dividend

Monno Jute Stafflers announced an amazing 350 percent stock dividend—23 times higher than the previous year—for the year ending on June 30, 2018.

The low-cap company that produces spare parts and accessories for jute and textile mills reported Tk 8.74 as earnings per share (EPS), which is 15 times higher than the previous year's Tk 0.57.

The company's directors had decided to provide hefty dividends from last year's profit along with the undistributed profits of the previous years, Benoy Paul, company secretary, told The Daily Star.

The company's sales and production increased for overhauling of machinery and addition of new ones, leading to minimisation of the total expenditure and jump in the EPS, the company informed through the website of Dhaka Stock Exchange.

Paul also said the board of directors had decided to enhance the paid-up capital from Tk 1 crore to Tk 100 crore as the company was planning for factory expansion.

“Our machinery has become very old so we need to bring new ones to enhance production capacity.”

On August 16, the stockmarket regulator suspended the share trading of Monno Jute Stafflers when its price soared almost five times to Tk 4,639 within five months of coming to the market.

On October 16, Bangladesh Securities and Exchange Commission had decided to withdraw the suspension and the company started trading again. In a few days, each share's price fell to Tk 4,078.4 but reached Tk 4,658.6—the highest ever—on October 25.