The board of directors of IFAD Autos has decided to revise rights share utilisation proceeds and seek one more year to utilise the rights share proceeds.
The revision of rights share utilisation proceeds is subject to the approval of the shareholders and the securities regulator, said an official disclosure posted on the Dhaka bourse’s website on Sunday.
As per the revised condition, the company will purchase another 820 decimal lands at Gazipur with a total cost of Tk 69.58 million and also purchase 1050 decimals land at Dhamrai in Dhaka.
The company will also make expansion of assembling unit where Tk 40 million will be given to Naif Engineering & Builders for the remaining tasks, the disclosure said.
They will also spend the remaining balance of more than Tk 37 million for land development.
For all the above revisions, the company will require additional one-year time specified in Rights Offer Document (ROD), the disclosure added further.
The automobile dealer raised a capital worth over Tk 1.24 billion through issuing 62.19 million rights shares last year for raising paid-up capital, expansion of the business, meeting the requirement of working capital, and paying off debts.
According to Rights Offer Document, the company’s rights share proceeds utilisation timeframe is within two years of receiving the fund.
Now, the company seeks additional time of one more year specified in the ROD.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.
Each share of the IFAD Autos, listed on the Dhaka bourse in 2015, closed at Tk 107.40 on Thursday last.
The company has recommended 22 per cent cash dividend for shareholders (excluding sponsors/directors) and 10 per cent stock dividend for all shareholders for the year ended on June 30, 2018. The AGM will be held on December 19.
In 2017, the company disbursed 21 per cent cash and 5.0 per cent stock dividend.
The company’s paid-up capital is Tk 2.25 billion and authorised capital is Tk 3.0 billion, while the total number of securities is 225.44 million.
The sponsor-directors own 62.77 per cent stake in the company while institutional investors own 18.78 per cent, foreign 5.03 per cent, and the general public 13.42 per cent as on October 31, 2018.
© 2017 - All Rights with The Financial Express