Fortune Shoes Ltd's share price surged by more than 9% on Tuesday after the company declared a 0.5% cash dividend, equivalent to 5 paisa per share, only for general shareholders.
Within the first 30 minutes of trading at the Dhaka Stock Exchange (DSE) today (25 November), the company's share price climbed to Tk14.40, reflecting increased investor enthusiasm following the dividend declaration.
According to the disclosure filed on the DSE, the board of directors recommended the 0.50% cash dividend for general shareholders excluding sponsors and directors for the financial year ending on 30 June 2025.
The company gave to spend Tk59 lakh to disburse the declared dividend.
To approve the dividend and audited financial statement, the company has scheduled the annual general meeting for 30 December and the record date for 15 December.
During the last fiscal year, its earnings per share (EPS) significantly dropped to Tk0.11 from Tk0.50 a year ago.
The firm attributed the significant EPS decline to rising manufacturing and finance costs—particularly from higher interest rates—along with reduced income from other sources, increased raw material expenses, customer claims, and losses incurred on certain export orders.