Intraco Refueling Station Ltd (IRSL) has decided to issue convertible bonds worth Tk 500 million for business expansion.
"The board of directors has decided to hold an extraordinary general meeting for issuance of "Intraco Refueling Convertible Bond" worth Tk 500 million for business expansion and also decided to merge five subsidiary companies with the parent company," said the company in a filing with the Dhaka Stock Exchange (DSE) on Monday.
The company has decided to hold an EGM on August 23 at 11:30am through a digital platform to seek shareholders' approval. The record date for the EGM is set on July 27.
Earlier in 2019, the Intraco Refuelling Station has decided to merge its five subsidiary companies with itself to reduce the 'management cost' and avail 'tax benefit'.
The boards of directors of the IRSL and subsidiary companies have also decided at a meeting that the parent company, IRSL, will take over all assets and liabilities of the five subsidiaries through merger, as per the disclosure earlier.
The subsidiary companies of the Intraco Refuelling Station are Absar & Elias Enterprises, East End Automobiles, M Hye & Co. CNG Refuelling Station, Good CNG Refueling Station and Nessa & Sons. The Intraco Refuelling Station holds more than 95 per cent stakes in its five subsidiary companies.
Following the merger, the IRSL can avail tax benefit. Besides, the merger will help avoid double taxation in case of dividend declared by the subsidiaries companies, according to the earlier disclosure.
Intraco Refuelling Station, currently an 'A' category company, was listed with the stock exchanges in 2018.
Following the news, its share price jumped 9.67 per cent to close at Tk 29.50 on Monday. Its shares traded between Tk 17.70 and Tk 29.50 in the last one year.
The company's three months consolidated earnings per share (EPS) was Tk 0.36 for January-March 2022 as against Tk 0.30 for January-March 2021.
Its nine months consolidated EPS also rose to Tk 0.73 for July 2021-March 2022 as against Tk 0.59 for July 2020-March 2021.
The company disbursed 2.0 per cent cash and 8.0 per cent stock dividend for the year ended on June 30, 2021. In 2020, it provided 5.0 per cent cash and 5.0 per cent stock dividend.
The company's authorised capital is Tk 1.50 billion and paid-up capital is Tk 982.33 million while total number of securities is 98.23 million.
Sponsor-directors own 30.66 per cent stake in the company while institutional investors 15.01 per cent and the general public 54.33 per cent as on May 31, 2022, the DSE data showed.
Incorporated in 2007, the company's principal services are selling gas through CNG refueling stations. IRSL is selling compressed natural gas (CNG) from its CNG refueling stations.
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