Dulamia Cotton Proposes 1% Cash Dividend for Public Shareholders
Bdbusinessdaily.com – Dulamia Cotton Spinning Mills Limited has proposed a 1% cash dividend for its general public shareholders for the financial year that ended on 30 June 2026, despite its textile manufacturing operations remaining inactive for several years.
The recommended distribution applies only to general shareholders, who own 50.61 lakh shares of the company’s 75.56 lakh total shares. If approved, the gross dividend payout will amount to Tk5.06 lakh.
Shareholders will vote on the proposal at the company’s annual general meeting, scheduled for 13 December. The record date for determining entitlement to the dividend has been fixed for 16 November.
Profit Comes From Rental Income
The company’s core textile business has not operated since 14 June 2020. Yet Dulamia Cotton earned a modest Tk15 lakh profit in FY26, reflecting income outside its original manufacturing activity rather than a revival in spinning operations.
Rental income has supported that result. In August 2024, the company leased 17,640 square feet of factory floor space in Feni to Chens Crop-Science Bangladesh Limited. The arrangement took effect from January 2024 and provides monthly rent of Tk3.52 lakh at Tk20 per square foot.
Beyond the rent, the tenant pays Tk50,000 each month for service and maintenance. The lease has therefore created a recurring income stream from an asset that would otherwise remain unused while the factory stays idle.
For investors, the development highlights the company’s current reliance on property-related earnings. Its proposed dividend is linked to a financial year in which rental receipts helped generate profit, while the company’s principal textile activity remained shut.
Financial Measures Show Mixed Movement
Dulamia Cotton posted earnings per share of Tk0.20 for FY26, compared with Tk0.25 in the preceding financial year. The decline indicates that profitability per share was lower than in FY25, even though the company remained in positive territory.
Its net asset value per share was negative Tk39.81 at the end of FY26, marginally better than negative Tk39.83 a year earlier. A negative net asset value per share means that the company’s liabilities exceed the value of its net assets on a per-share basis, a figure investors commonly consider when assessing financial strength.
Net operating cash flow per share improved during the year, rising to Tk0.53 from Tk0.41 in FY25. This increase points to stronger cash generation from operating activities, although cash-flow improvement and overall balance-sheet health measure different aspects of a company’s financial position.
The proposed 1% cash dividend is lower than the 3% cash dividend the company distributed for FY25 in August this year. The latest recommendation, if endorsed by shareholders, would continue the company’s practice of making a payout even as its original production facilities remain non-operational.
Share Trading and Company Background
Dulamia Cotton’s share price fell 0.61% on Monday to close at Tk193.40 on the Dhaka Stock Exchange. The company is currently traded in the exchange’s “Z” category.
The category is relevant for market participants because exchange classifications can signal specific conditions surrounding a listed company. Investors examining the stock may look beyond day-to-day price changes and consider the prolonged production shutdown, the source of current earnings, cash-flow movement and the negative net asset value per share.
Incorporated in 1987, Dulamia Cotton was listed on the stock market in 1989. The company was founded by Environment, Forest and Climate Change Minister Abdul Awal Mintoo.
The upcoming AGM will give eligible shareholders an opportunity to decide on the proposed FY26 dividend. Those seeking to qualify for the payment will need to hold shares by the record date of 16 November, subject to the applicable procedures of the exchange and the company.
While the proposed payout is small in absolute terms, it reflects an effort to return part of the year’s earnings to public shareholders. The company’s future financial direction will remain closely tied to whether it can sustain income from leased facilities and how it manages assets that are no longer being used for textile production.
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