Additionally, IFIC Bank and GPH Ispat made it onto the blue chip index of the DSE
Local electronics manufacturing giant Walton Hi-Tech Industries Limited entered the DSEX, the key index of Dhaka Stock Exchange (DSE), on Sunday.
The company started trading its shares on 23 September last year at Tk252 each and secured second position in market capitalisation with a contribution of 7.33% of the DSE's total market capital.
At the end of Sunday's trading session, its share price stood at Tk1,037.50 each at the DSE.
Walton collected Tk100 crore from the market by issuing only 0.97% of its shares to expand its business and repay some bank loans.
During a virtual conference on 5 October, 2020, Salman F Rahman, the prime minister's adviser for private industry and investment, questioned the approval of the listing of Walton on the stock market by offloading only 1% of its shares.
He said, "I do not know whether it was done intentionally, but it is sending the wrong message."
The conference was organised by the Bangladesh Securities and Exchange Commission (BSEC).
BSEC Chairman Shibli Rubayat-Ul-Islam informed the conference that Walton's bidding and other parts of the IPO process ended before he took charge.
"However, we are keeping an eye on ensuring that such things do not happen in future," he said.
He added, "We will arrange a meeting with Walton officials to protect the interests of investors."
Walton approved a 200% cash dividend for general shareholders and 75% cash dividend for sponsors and directors for the financial year 2019-2020.
According to the DSE source, alongside Walton, the index committee of the DSE has added 20 more companies to the DSEX, namely: Fareast Finance, Dulamia Cotton, Zahintex, Tung Hai Knitting, Savar Refractories, Imam Button, Shyampur Sugar, The Dacca Dyeing, Padma Islami Life Insurance, Global Heavy Chemicals, Express Insurance, Delta Spinners, Golden Son, Ring Shine Textiles, Sonali Paper, ICB Islamic Bank, ADN Telecom, MI Cement, Square Textiles, and Green Delta Insurance.
Meanwhile, Appollo Ispat is being dropped from the DSEX as it failed to meet the criteria.
After the semi-annual rebalancing of the blue chip index DS30, two new companies – IFIC Bank and GPH Ispat – were added to the index. Meanwhile, Paramount Textile and National Bank are getting dropped from the DS30 list.