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Search date: 30-03-2018 Return to current date: Click here

Stylecraft to expand capacity by 23pc

FE Report | March 30, 2018 00:00:00

The board of directors of Stylecraft, a 100 per cent export-oriented readymade garment manufacturer, has decided to increase production capacity by 23 per cent to fulfil the existing buyers' demand.

For this, the board has decided to add machinery for six more lines to increase the production capacity, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.

The board decided to apply for a term loan of Tk 52 million with five years tenure to open letter of credit for importing brand new capital machinery to Pubali Bank Limited.

Meanwhile, the company's share price soared 18.8 per cent or Tk 264.2 each to reach at Tk 1,667.10 on Wednesday in the last five trading sessions, which prompted the DSE to serve show cause notice on the company.

However, the company's share price fell 4.46 per cent to close at Tk 1,592.60 each on Thursday.

The company informed the DSE Thursday that there is no undisclosed price sensitive information at the stipulated period.

However, the company informed that they conducted a board meeting on Wednesday when these resolutions were adopted.

"The board is pleased to inform that Stylecraft has completed its retrofitting works of existing building which was recommended by the Accord," said the disclosure.

Accord is a western buyers' platform working to improve workplace safety in Bangladesh readymade garment sector.

The company's earnings per share for October-December, 2017 stood at 6.43 as against Tk 5.75 for October-December, 2016.

In six months for July-December, its earnings per share stood at Tk 12.37 as against Tk 14.96 for the same period a year ago.

Stylecraft, which was listed on the Dhaka bourse in 1983, disbursed 10 per cent cash and 80 per cent stock dividend for the year ended on June 30, 2017.

The company's paid-up capital is Tk 9.90 million and authorized capital is Tk 10 million while the total number of securities is 990,000.

The sponsor-directors own 53.43 per cent stake in the company while the institutional investors 6.56 per cent, and the general public 40.01 per cent as on February 28, 2108, the DSE data showed.

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