DESCO has been authorized by the stock market regulator to issue preference shares to the government, totaling over 607.69 million shares at Tk 10 each, to fulfill regulatory requirements. These preference shares, not impacting existing shareholders’ equity, will prioritize dividends over common stocks but do not grant cumulative dividend rights. The move aims to comply with a directive converting share money deposits into capital, as per the Financial Reporting Council’s 2020 gazette. DESCO’s financial struggles include a significant FY23 loss of Tk 5.41 billion, largely due to foreign currency transaction losses amid a 38% appreciation of the US dollar against the taka since February 2022. This has led to increased debt repayments in dollars. Despite these challenges, DESCO’s stock price fell by nearly 28% to Tk 26.1 per share on the Dhaka Stock Exchange following the removal of floor pricing in January.
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