Aamra Networks looks to issue rights shares for expansion

Aamra Networks has planned to raise around Tk 930 million by issuing rights shares to cover expenses of BMRE (Balancing, Modernisation, Rehabilitation and Expansion) and to pay back loans.

The board of directors has taken the decision to expand its paid-up capital by distributing rights shares at a ratio of 2:1 (R). For every two existing shares one rights share will be offered at a price of Tk 30 with a premium of Tk 20 per share.

The decision is subject to approval of the shareholders at the annual general meeting (AGM), the securities regulator and other authorities concerned.

The fund will be partially utilised for the purpose of upgrading network system and network coverage expansion.

Aamra Networks saw a 106 per cent jump in profit for FY23 to Tk 225.63 million, compared to the previous fiscal year.

The profit growth was driven by increased profitable IT support, software services and internet sales, according to a corporate disclosure.

Company secretary Syed Moniruzzaman said the company's profit was expected to go further up on completion of BMRE and loan repayment.

The company's outstanding shares are about 61.98 million and so nearly 30.99 million rights shares will be issued. The rights issues would help raise Tk 929.80 million.

The company said that although the amount of cash received from customers had increased, concurrent increases in supplier payments, operating costs, and taxes had an adverse influence on the net operating cash flow compared to the previous year.

As a result, the net operating cash flow per share (NOCFPS) declined to Tk 6.17 for FY23 from Tk 8.10 reported for the previous year.

The company reported a net asset value per share of Tk 38.11 for FY23, up from Tk 34.95 for the previous year.

Its board of directors recommended 11 per cent cash dividend for the year ended in June this year.

Meanwhile, the share price of Aamra Networks exhibited an upward trend between February and April and peaked at Tk 86.6 on April 26.

Later, the share price gradually fell to Tk 59.3 by August 16. The stock closed at Tk 63.90 on Tuesday.

mufazzal.fe@gmail.com