The Bangladesh Securities and Exchange Commission (BSEC) has approved Gemini Sea Food, a leading frozen shrimp and fish exporter, to distribute stock dividends to its shareholders.
The commission issued a letter to the company in this regard last Sunday.
For FY24, the company’s board recommended a 7.50% cash dividend and a 7.50% stock dividend for its shareholders. The record date for entitlement has been set for 7 January.
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Currently, Gemini Sea Food’s paid-up capital stands at Tk10.68 crore, which will increase with the issuance of the stock dividend.
On Tuesday, the company’s share price closed at Tk164.40 on the Dhaka Stock Exchange.
Recently, the BSEC rejected the company’s application for issuing rights shares, citing its failure to provide the necessary sales documentation.
In February this year, the company decided to issue more than 2.13 crore rights shares to bolster its paid-up capital, settle outstanding bank loans, and facilitate business expansion.
The shrimp exporter prepared a plan to issue the right shares at a ratio of two shares for every existing share (2R:1), priced at Tk60 each, including a premium of Tk50 per share.
In August last year, the BSEC formed a three-member committee to probe the company’s “inflated revenue figures” during a preliminary inquiry by the Dhaka bourse.
The committee found that during the nine months from July 2022 to March 2023, revenue from local sales amounting to Tk27.36 crore was falsified and fabricated.
Besides, the committee found the company had falsely claimed to have sold products to seven local buyers. The buyers informed the BSEC that they had not received any Gemini products during the specified period.
A company official declined to comment, and attempts to reach two other officials were unsuccessful as their phones were switched off.
In December 2021, the BSEC instructed the listed companies to maintain Tk30 crore paid-up by next year. To comply with the regulator’s instructions, Gemini Sea Food in FY23 paid a 100% stock dividend to increase its paid-up capital.
Gemini Sea Food, a pioneer in exporting certified organic shrimp to EU retailers, processes, packages, and exports quality frozen raw shrimp, cooked shrimp, and whitefish.
Listed on the Dhaka Stock Exchange in 1985, the company exports its products to the US, the UK, Germany, Denmark, the Netherlands, Belgium and Russia.