BEXIMCO, Beximco Pharma finally comply with minimum shareholding rules

Staff Correspondent | Published at 08:28pm on December 01, 2020

Bangladesh Export Import Company Limited and Beximco Pharmaceuticals Limited have finally complied with mandatory minimum 30 per cent joint shareholdings by their sponsor-directors after remaining noncompliant for years.

Beximco Group confirmed the matter to Bangladesh Securities and Exchange Commission on Monday.

As per the Dhaka Stock Exchange data on October 31, joint shareholdings by sponsor-directors of Beximco Pharmaceuticals was 13.19 per cent, or 5.34 crore number of shares, while BEXIMCO 20.15 per cent, or 17.65 crore number of shares. The companies remained non-compliance for years.

Joint shareholding by sponsor-directors of Beximco Pharmaceuticals reached to 30.18 per cent, or 12.24 crore number of shares, while BEXIMCO Limited reached to 30.55 per cent, or 26.76 crore number of shares, as per data on November 30.

The BSEC on November 22, 2011 issued a notification, which was amended in May 2019, making it mandatory for sponsor-directors of a listed company to hold jointly at least 30 per cent shares of the company, but is yet to implement the rules fully.

Share prices of Beximco Pharma started to fly from Tk 65.4 per share on July 5 and continued the momentum to settle at Tk 144.2 each on Tuesday.

Share price of BEXIMCO was at Tk 13.1 per share on July 29 that climbed to Tk 25.1 per share on Tuesday.

Both the companies dominated the market with significant turnover in recent months.

Earlier on July 29, the BSEC gave an ultimatum to 41 listed companies to comply with the 30 per cent shareholding rules within 60 working days. The time, however, was later extended to November 30.

Apart from BEXIMCO and Beximco Pharmaceuticals, Baraka Power, Bay Leasing & Investment, Bangladesh General Insurance Company, Bangladesh Thai Aluminum, The City Bank, Emerald Oil Industries, Maksons Spinning Mills, Meghna Life Insurance, Metro Spinning Limited, Northern Islami Insurance, Peoples Insurance, Southeast Bank and Standard cERamic Industries have also complied the 30 per cent minimum shareholding rules within the stipulated time.