Bangladesh Building Systems PLC (BBS) and Information Services Network Ltd (ISN) have been downgraded from the “B” category to the “Z” category after failing to declare dividends for two consecutive years.
Both companies also reported losses per share for the financial year ended 30 June 2026. The reclassification took effect today (28 October).
With the latest changes, the number of companies in the “Z” category on the Dhaka Stock Exchange (DSE) has risen to 129.
The two companies’ share prices moved in opposite directions on the day of the downgrade. ISN’s share price fell 8.35% to Tk37.30 on the DSE today, while BBS shares rose 1.14% to Tk8.90.
According to DSE disclosures, BBS’s board has recommended no dividend for FY26. The company reported a loss per share of Tk0.91 for the year.
BBS’s net asset value (NAV) per share declined to Tk10.69 from Tk10.74 a year earlier.
The company’s annual general meeting (AGM) is scheduled for 15 December in a hybrid format. The record date has been set for 17 November.
Meanwhile, ISN’s board has also recommended no dividend for FY26. The company reported a loss per share of Tk0.51, compared with a loss of Tk0.43 in the previous financial year.
ISN’s NAV per share fell to Tk1.91 from Tk2.42 a year earlier. ISN’s AGM will be held on 30 November in a hybrid format. Shareholders can attend in person at the company’s head office on New Eskaton Road in Dhaka or participate through a digital platform. The record date has been set for 18 November.
According to separate DSE announcements, the category changes were made under provision 1(a) of a Bangladesh Securities and Exchange Commission (BSEC) directive issued on 20 May, 2024. The provision requires companies that fail to declare dividends for two consecutive years to be placed in the “Z” category.
In addition, stockbrokers and merchant bankers have been instructed not to provide loans to investors for purchasing shares of either company.
Investors should assess the companies’ financial statements, business conditions and future prospects before making investment decisions.
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