Foreign investors offload Tk85cr Marico shares in six months

According to Dhaka Stock Exchange (DSE) data, foreign investors’ stake in the company fell from 1.91% in March to 0.91% in August, a decline of 1% point in the company’s total outstanding shares.

Foreign investors have continued to offload their holdings in Marico Bangladesh Limited, an India-based multinational personal care manufacturer, selling around 3.15 lakh shares worth approximately Tk85 crore between March and August this year.

According to Dhaka Stock Exchange (DSE) data, foreign investors’ stake in the company fell from 1.91% in March to 0.91% in August, a decline of 1% point in the company’s total outstanding shares.

The monthly figures show a steady sell-off, with foreign holdings declining to 1.85% in April, 1.80% in May, 1.53% in June and 0.99% in July before reaching 0.91% in August.

Norway’s sovereign wealth fund, the world’s largest sovereign wealth fund and Marico’s primary foreign shareholder, also reduced its stake to 0.52% in the first half of 2026, from 0.67% in 2025.

Market insiders said Marico, once considered a preferred stock among listed multinational companies, has seen its appeal among foreign investors weaken, mainly due to macroeconomic headwinds rather than any significant deterioration in the company’s underlying performance.

Despite the recent sell-off, Marico still has the third-highest foreign ownership among listed multinational companies, behind British American Tobacco Bangladesh and Bata Shoe Company (Bangladesh).

As of August, sponsors and directors held 90% of Marico’s shares, while institutional investors held 6.72%, the public 2.37% and foreign shareholders 0.91%.

The foreign exit coincides with a recent quarterly earnings dip. Marico Bangladesh, producer of the popular Parachute brand, reported a 12.38% year-on-year drop in net profit to Tk170.47 crore for the April–June quarter of 2026, its first quarterly profit decline in four years. Revenue, however, grew 4% to Tk531.86 crore during the period.

Management attributed the profit contraction to rising raw material prices and lower finance income.

Earnings per share (EPS) fell to Tk54.12 from Tk61.77, while net operating cash flow per share dropped to Tk20.28 from Tk66.73 due to higher supplier payments.

Meanwhile, net asset value per share rose to Tk146.14 as of 30 June 2026, up from Tk92.02 in March.

Despite the profit decline, the board declared a massive 500% interim cash dividend (Tk50 per share), continuing its trend of high dividend payouts to repatriate profits to its Indian parent company, Marico Limited.

Source: The Business Standard