The board of directors of Runner Automobiles Ltd. has approved a proposal for establishing a three-wheeler progressive manufacturing plant at its factory at Bhaluka in Mymensingh.
However, the setting up of the plant is subject to the final agreement with the international partner of the company, according to an official disclosure published on Tuesday.
The board also decided to revise the use of IPO proceeds, subject to approval of the shareholders at the extraordinary general meeting (EGM) and the Bangladesh Securities and Exchange Commission.
The EGM will be held on December 17 and the record date for EGM is November 19.
The company has decided to set up progressive plant of CNG/LNG-based three-wheelers with the existing two-wheelers manufacturing facilities to grab the huge potential market all over Bangladesh.
Through implementing the project, the company will be able to improve the excellence for producing and distributing rapidly expanding two-wheelers at its own plant which will reduce cost of materials and flourish the existing market portfolio, according to the disclosure.
With the new manufacturing units, the company will produce around 30,000 units a year. The initial capacity of the progressive manufacturing plant will be 3,000 units a month, it said.
Recently, the board of directors of the company has recommended 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2019.
The annual general meeting will be held on November 25.
The company has also reported consolidated EPS of Tk 5.07, consolidated NAV per share of Tk 65.49 and consolidated NOCFPS of Tk 0.67 for the year ended on June 30, 2019 as against Tk 4.90, Tk 59.53 and Tk 2.64 respectively for the same period of the previous year.
Each share of the company, listed on the Dhaka bourse in 2019, closed at Tk 61.90 on Tuesday, gaining 3.0 per cent over the previous day.