Evince Textiles, which was placed in 'Z' category on September 24 from 'A' category due to 'no' dividend declaration for the year ended on June 30, 2018, has decided to invest about Tk 703.7 million for BMRE of its existing project.
Of the total amount, Tk 554.10 million or 79 per cent will be arranged through term loan from Modhumoti Bank, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Monday.
The remaining amount of Tk 149.60 million or 21 per cent will be financed from the company's own sources as equity, it said.
As per the BMRE (balancing, modernisation, rehabilitation and expansion) programme, the company will set-up capital machinery and equipment with pumps, motors, pipes, auxiliaries, fixtures, fabrication, erection and installation worth Tk 547 million and, building and civil construction worth Tk 156.70 million, said the disclosure.
The proposed BMRE has been taken up by the board with a view to enhancing the overall production capacity by 50 per cent.
The board has also approved the decision of the directors of the company regarding their voluntary forgoing of accumulated remuneration of Tk 73.20 million payable to them up to June 30, 2018, it said.
The investors showed frustration as the Evince Textiles declared 'no' dividend within two years of listing.
However, the share price of the company rose 2.0 per cent to close at Tk 10.10 each on Monday at the DSE.
The company has also reported consolidated earnings per share (EPS) of Tk 1.06, consolidated net asset value (NAV) per share of Tk 14.44 and consolidated net operating cash flow per share (NOCFPS) of Tk 2.85 for the year ended on June 30, 2018 as against Tk 1.16, Tk 14.73 and Tk 2.78 respectively for the same period of the previous year.
The company's paid-up capital is Tk 1.58 billion and authorised capital is Tk 3.50 billion, while the total number of securities is 158.40 million.
The sponsor-directors own 36.67 per cent stake in the company while institutional investors own 20.90 per cent and the general public 42.43 per cent as on September 30, 2018, the DSE data shows.
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