The board of directors of Alif Industries has decided to setup two new business units with a total investment of Tk 4.0 billion, said an official disclosure on Tuesday.
The company will establish spinning mills with capacity of 50,000 spindles and LEEDS certified green plant for manufacturing of "Woven Denim" consisting of 25 production lines under the name of "Alif Industries Ltd.".
"The total investment Tk 4.0 billion is required for the aforesaid two new business units," said a disclosure posted on the Dhaka Stock Exchange (DSE) website on Tuesday.
The source of financing of these two new business units will be through capital raise (issue of capital), subject to approval of Bangladesh Securities & Exchange Commission (BSEC) and other sources, said the disclosure.
The company has also decided to hold an extraordinary general meeting (EGM) on March 14, 2018 to pass some special resolutions.
The special resolutions include to increase authorised capital of the company from Tk 500 million to Tk 1.50 billion, to amend clause of articles of association of the company, to issue 30 million ordinary shares at an average price of 30 times of earnings (i.e. at PE ratio 30X) and 3 months moving average of market price through capital raise (issue of capital) to the board of directors/shareholders/private placement, subject to approval of BSEC.
The record date for EGM is on March 11, 2018. The EGM will be held at 1:00pm at Gulshan Club in Dhaka.
Following the news, the company's share price soared 3.95 per cent to close at Tk 105.20 on Tuesday at the Dhaka bourse.
Alif Industries, which was in the over the counter (OTC) market for last eight years, commenced its share trading on the DSE main market on December 28, 2017.
Alif Industries also made share trading on Chittagong Stock Exchange's main market on January 25 this year.
The company's earnings per share (EPS) stood at Tk 1.39 for October-December, 2017 as against Tk 0.75 for October-December, 2016.
In six months for July-December, 2017, EPS was Tk 2.04 as against Tk 1.31 for July-December, 2016.
The textile sector company disbursed 10 per cent cash and 25 per cent stock dividend for the year ended on June 30, 2017.
The company's paid-up capital is Tk 375.97 million and authorised capital is Tk 500 million while total number of securities is more than 37.59 million.
The sponsor-directors own 60.45 per cent stake in the company, while institutional investors own 17.40 per cent, and the general public 22.15 per cent as on January 31, 2018, the DSE data shows.
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