RD Food former chairman plans total exit from company

SM Fakhar-Uz-Zaman, one of the sponsors and former chairman of Rangpur Dairy and Food Products Ltd, widely known as RD Food, has announced plans to sell his entire shareholding in the company through the stock market.
He disclosed his intention to sell 1.05 lakh shares of RD Food at the prevailing market price through the public market on the Dhaka Stock Exchange (DSE) within the next 30 working days, according to a disclosure filed with the bourse.
Fakhar-Uz-Zaman, the founder of the company, served as chairman from 2004 to 2017.
Over the past few years, however, he has gradually reduced his ownership in the company. Market sources said Fakhar-Uz-Zaman began offloading shares in 2019 when he held nearly 10% of the company's shares.
Once the announced sale is completed, the former chairman will fully exit the company's shareholding.
Apart from his business involvement, Fakhar-Uz-Zaman is also active in politics. He is a presidium member of the Jatiya Party and contested the 13th national parliamentary election from the Rangpur-5 constituency, although he was unsuccessful in securing the seat.
Shares of RD Food closed 1.54% higher at Tk19.80 on Thursday on the Dhaka bourse.
The company's recent financial performance, however, reflects a decline in profitability compared to the previous year. Its earnings per share (EPS) stood at Tk0.16 for the October-December quarter of FY2025, down from Tk0.31 in the same quarter a year earlier.
For the July-December period of the 2025-26 fiscal year, the company reported EPS of Tk0.38, compared with Tk0.66 in the corresponding period of the previous year.
Meanwhile, the company's latest audit report has raised concerns over certain financial practices. Faruk Ahmed, partner at Khan Wahab Shafique Rayhman & Co Chartered Accountants, issued an opinion in the audit report for the fiscal year 2024-25.
According to the auditor, the company calculated its deferred tax liability using a previous statutory regulatory order (SRO) rate of 15% instead of applying the currently applicable rate of 22.5%, which could affect the accuracy of its reported tax obligations.
The auditor also flagged inconsistencies related to unclaimed dividends and IPO funds, noting that Tk57.37 lakh from the IPO subscription remained unadjusted under non-claimed general share applications, which overstated the company's capital position.
The auditor also raised concerns about the company's ability to repay bank loans and other liabilities, citing lower cash inflows.
The report stated that the net operating cash flow of the company decreased to Tk0.16 crore in FY25 from Tk1.47 crore in the previous fiscal year, primarily due to changes in the timing of collections and payments.
As a result, the report noted, the company is facing liquidity constraints, as reflected by delayed payments of bank loans and other liabilities.
















