Evince Textiles to invest Tk 703m for expansion

FE Online Report | Published: October 08, 2018 12:08:08 | Updated: October 09, 2018 12:16:25


The board of directors of Evince Textiles Limited has decided to invest approximately Tk 703.7 million for BMRE (balancing, modernisation, rehabilitation and expansion) of its existing project.

Of the total amount, Tk 554.10 million or 79 per cent to be procured by availing term loan facilities from Modhumoti Bank, according to an official disclosure on Monday.

The balance amount of Tk 149.60 million or 21 per cent will be financed from company’s own sources as equity.

The breakdown of the investment is as follows, capital machinery & equipment with pumps, motors, pipes, auxiliaries, fixtures, fabrication, erection & installation worth Tk 547 million and building & civil construction worth Tk 156.70 million.

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 also approved the decision of the directors of the company regarding their voluntary forgoing of their accumulated remuneration of Tk 73.20 million payable to them up to June 30, 2018.

Recently, Evince Textiles placed in ‘Z’ category as the company has not recommended any dividend for the year ended on June 30, 2018.

The stock brokers and merchant bankers have also been requested to abstain from providing loan facilities to purchase security of the ETL.

The company’s earnings also declined for the year ended on June 30, 2018.

The company has reported consolidated EPS (earnings per share) of Tk 1.06, consolidated NAV (net asset value) per share of Tk 14.44 and consolidated NOCFPS (net operating cash flow per share) 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 disbursed 10 per cent stock dividend for the year ended on June 30, 2017.

ETL was listed with the stock exchanges in 2016. The company’s sponsor-directors hold 36.67 per cent shares while institutions and general shareholders hold 19.53 per cent and 43.80 per cent shares respectively as on August 31, 2018.

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