Aman Feed, a listed animal feed producer, has decided to make an agreement with Star Feed Mills for all works related to feed production.
"Under the agreement all works related to feed production including supply of raw materials will be done by Aman Feed," the company said in a filing with the Dhaka Stock Exchange (DSE) on Wednesday.
Additional 6000 tonnes finished broiler & layer feed per month will be produced with effect from today (Thursday) for the period of consecutive twelve months, said the filing.
"Aman Feed will sell this feed through its existing distribution network to all over the country," according to the filing.
After execution of the agreement the maximum sale volume may increase up to 72000 tonnes and sales amount also will be increased to approximately Tk 3.45 billion during the agreement period, it said.
The company expects its profit will increase by Tk 100 million (approximately) in 12 months, according to the filing.
Following the news, its share price surged by 1.67 per cent to close at Tk 42.60 on Wednesday, despite the market tumbled.
The company's earnings per share (EPS) fell 64.44 per cent to Tk 0.16 for January-March 2022 which was Tk 0.45 for January-March 2021.
In nine months for July 2021-March 2022, its EPS was Tk 2.05 as against Tk Tk. 2.11 for July 2021-March 2022.
Listed in 2015, the company disbursed 15 per cent cash dividend for the year ended on June 30, 2021. In 2020, it provided 10 per cent cash and 2.50 per cent stock dividend.
Currently, the company's paid-up capital is Tk 1.30 billion and authorised capital is Tk 1.50 billion while total number of securities is 130.97 million.
Sponsors hold 63.26 per cent stake in the company, institutions 10.28 per cent, foreign investors 0.05 per cent and the general public 26.41 per cent as of April 30, 2022, according to DSE data.
Aman Feed, a concern of Aman Group was incorporated in 2005.