Beximco Synthetics extends share surrender time to 30 May

Beximco Synthetics Ltd extended the share surrender time till 30 May 2022 for delisting its 55,778,623 ordinary shares.

The company failed to meet the previous deadline of 28 April, because its submission of relevant documents was incomplete.

In January this year, the Bangladesh Securities and Exchange Commission (BSEC) gave approval to the company to buy its ordinary shares back from general shareholders at a face value of Tk10 each.

In September last year, the company's board of directors decided to wind up the company and delist it from the stock exchanges.

As per BSEC directives for the company to exit the bourses, its shares have been suspended in the stock market since 8 September last year.

Currently, general shareholders, including institutional and foreign investors, hold 55,778,623 shares of Beximco Synthetics.

The company has been incurring losses since 2013 and has failed to provide any dividends to shareholders since then.

Beximco Synthetics was incorporated as a public limited company in 1990 with the Registrar of Joint Stock Companies and Firms (RJSC).

It was mainly engaged in the production and sale of Drawn Texturised Yarn (DTY), a type of polyester yarn. 

It was listed with the stock exchanges in 1993, and launched manufacturing operations in 1994.

In the company's annual report for fiscal 2020-21, its Chairman, ASF Rahman, said there has been a sizeable demand for DTY since the inception of the company which made good profits and regularly declared dividends for 18 years till 2013 without any interruption.

But from 2013 onwards, it could not declare any dividends because the company's business was repeatedly hampered by the government reducing import duties on DTY.

Consequently, the company could not maintain its targeted production and profitability and eventually fell into losses.

Shares of the company traded below face value for a number of years and the company soon had to cease production and close down its plant.