The management of the Ring Shine Textiles Ltd closed its factory for one month until October 25 due to decline in export orders.
The management has decided to lay-off factory due to worldwide impact of prevailing Covid-19 pandemic, declining orders from foreign buyers, and shortage of imported raw materials, the company said in a posting through Dhaka Stock Exchange website on Sunday.
The factory will be reopened as usual from October 26, 2020, according to the disclosure.
Following the lay-off news, the company's share price tumbled to Tk 7.10 on Sunday, far below from its issue price of Tk 10 each within nine months after listing.
It was the Sunday's biggest loser, slumping by 8.97 per cent over the previous day. Its share traded between Tk 5.60 and Tk 21.90 in the last one year.
The company's share's price fell below face value of Tk 10 each soon after getting listed on the bourses on December 12, 2019 as it issued huge number of shares.
The textile maker raised a capital worth Tk 1.50 billion by issuing 150 million ordinary shares from the capital market under the fixed price method for purchasing and installation of machinery and partial repayment of bank loans.
Prof. Khairul Hossain-led BSEC commission approved the company's IPO proposal to raise fund from the capital market.
The company's IPO fund account was suspended for six months and the management could not use this fund as the securities regulator subsequently requested the Bangladesh Bank to freeze the IPO account of the company on charges of irregular cash disbursements.
Recently, the Bangladesh Securities and Exchange Commission (BSEC) has withdrawn the embargo on the use of the initial public offering (IPO) fund of Ring Shine Textiles.
The company's earnings per share turned in negative Tk 0.19 for January-March 2020 which was Tk 0.33 in the positive for January-March 2019.
In nine months, EPS was Tk. 0.69 for July 2019-March 2020 as against Tk. 0.99 for July 2018-March 2019.
The company disbursed 15 per cent cash dividend for the year ended on June 30, 2019.
Its paid-up capital is Tk 5.0 billion and authorised capital is Tk 5.40 billion, while the number of securities is 500.31 million.
The sponsor-directors own 31.54 per cent stake in the company, while institutional investors own 20.35 per cent, foreign 0.07 per cent, and the general public 48.04 per cent as on August 31, 2020.
Established in 1998, major activities of the Ring Shine Textiles is manufacturing and marketing of gray and finished fleece fabrics of various qualities, and dyed yarn to the ready-made garment (RMG) industry in Bangladesh. All the sponsors and directors of the textile firm are Taiwanese.
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