Evince Textiles tops gainer list after merger news

FE REPORT | Friday, 24 September 2021

Evince Textiles topped the gainer's list on Thursday as the company announced to merge with its subsidiary, Evitex Fashions in order to reduce operational costs.

The textile company's share closed at Tk 13.50 on Thursday, soaring 8.87 per cent over the previous day. Its share traded between Tk 6.40 and Tk 13.80 in the last one year.

The board of directors of the Evince Textiles will hold an extraordinary general meeting (EGM) on November 6 at 12:00 noon through the digital platform to get approval of the scheme of amalgamation, the company said in a filing with the Dhaka Stock Exchange (DSE) website on Thursday.

Earlier on May 11, the company took the merger decision and further informed on Thursday that the board has decided to hold an EGM to get approval of the scheme of amalgamation for merger of Evitex Fashions with Evince Textiles in accordance with the direction of the High Court by an order dated August 23, 2021.

A company official said the merger will help reduce management cost and corporate tax, and accounting could be easier after the merger.

The company has reported earnings per share (EPS) of Tk 0.85 for January-June 2021 as against Tk 0.83 for January-June 2020.

Each share of the company, which was listed on the Dhaka bourse in 2016, disbursed 5.0 per cent stock dividend for the year ended on June 30, 2020. In 2019, company provided 2.0 per cent cash and 10 per cent stock dividend.

The company's paid-up capital is Tk 1.82 billion and authorised capital is Tk 3.50 billion while the total number of securities is 182.95 million.

The sponsor-directors own 36.67 per cent stake in the company, while the institutional investors own 20.46 per cent and the general public 42.87 percent as on August 31, 2021, the DSE data shows.

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