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The Financial Express

Anwar Galvanizing's price jumps on expansion news

| Updated: August 20, 2021 09:36:35


Anwar Galvanizing's price jumps on expansion news

The share price of Anwar Galvanizing, a subsidiary of Anwar Group, soared following the news that the company has decided to double its production.

The share price rose by 3.15 per cent on Tuesday on the Dhaka Stock Exchange (DSE) to close at Tk 343.70 each, after hitting one year highest price.

The company's share price jumped 196 per cent or Tk 227 each in the past three months. Its share price was Tk 116 each three month earlier on May 17. In the last one year, the company's shares traded between Tk 76.80 and Tk 345 each.

The board of directors of Anwar Galvanizing has decided to increase its production capacity, said the company in a filing with the Dhaka Stock Exchange (DSE) Tuesday.

The company has approved an expansion plan for increasing the production by 2,417 MT per annum requiring additional investment of Tk 273.7 million (including working capital requirement of Tk 20 million).

The sources of machinery are in majority same as existing in operation. On completion of the project, the total capacity will stand at 4,725 MT per annum and the market share of the company will increase from 25 per cent to 52 per cent, said the company.

The company received sanction letter from the DESCO (Dhaka Electric Supply Company) for an additional power supply of 1 MW that will support the expansion, it said.

The new expansion project will be financed from a mix of own resources and borrowed finance. The project is expected to go into operation from the fourth quarter next year, said the company.

Started operation in mid-1980s, Anwar Galvanizing is involved in manufacturing of galvanized corrugated sheet and galvanized GI fittings of all specifications and grades.

The company is the country's first manufacturer of galvanized iron-pipe fittings and brake drums.

The company has reported restated earnings per share (EPS) of Tk 0.54 for January-March 2021 as against Tk 0.61 for January-March 2020.

In nine months for July 2020 to March 2021, its EPS was Tk 2.13 as against Tk 1.43 for July 2019-March 2020.

The company's net operating cash flow per share (NOCFPS) was Tk 0.12 for July 2020-March 2021 as against Tk 1.84 for July 2019-March 2020.

The net asset value (NAV) per share was Tk 11.52 as on March 31, 2021 and Tk 10.85 as on June 30, 2020.

Anwar Galvanizing, which was listed on the DSE in 1996, disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on June, 2020. In 2019, it provided a 10 per cent cash dividend.

The company's paid-up capital is Tk 152.46 million and authorised capital is Tk 200 million, while the total number of securities is 15.24 million.

The sponsor-directors own 35.32 per cent stake in the company, while institutional investors own 23.51 per cent and the general public 41.17 per cent as on July 31, 2021, the DSE data showed.

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