Munnu Agro and General Machinery has declared its highest bonus dividend in five years to comply with the Bangladesh Securities and Exchange Commission’s (BSEC) directive to raise its capital. The company announced a 35% dividend for the financial year ending in June, consisting of a 32% bonus and a 3% cash dividend.
The BSEC requires all companies listed on the main board of the stock market to maintain a minimum capital of Tk 30 crore, a directive issued in 2021. Munnu Agro’s recent capital-raising initiative was prompted by the directive, and its bonus share announcement led to increased trading activity. The company’s stock price saw a significant increase, with each share gaining over 6 percent to reach Tk 890. The BSEC has set a deadline for companies to raise their capital to meet regulatory requirements, and many small-capitalized companies are extending their compliance deadline.