The management of the Ring Shine Textiles Ltd has decided lay off of the factory for one month time up to October 25, 2020.
Due to worldwide impact of prevailing Covid-19 pandemic, declining orders from foreign buyers, and shortage of imported raw materials, the company decided to close factory, said a disclosure posted on the Dhaka Stock Exchange website on Sunday.
The factory will be reopened as usual from October 26, 2020, according to the disclosure.
Ring Shine Textiles, raised a capital worth Tk 1.50 billion from the capital market last year under the fixed price method for purchasing and installation of machinery, partial repayment of bank loans and to meet the IPO expenses.
Each share of the company, which was listed on the Dhaka Stock Exchange (DSE) in December 2019, closed at Tk 7.80 on Thursday, far below from its issue price of Tk 10 each within nine months after listing.
Its share traded between Tk 5.60 and Tk 21.90 in the last one year.
The company’s earnings per share turned negative Tk 0.19 for January-March 2020 which was Tk 0.33 in the positive for January-March 2019.
In nine months, EPS was Tk. 0.69 for July 2019-March 2020 as against Tk. 0.99 for July 2018-March 2019.
The company disbursed 15 per cent cash dividend for the year ended on June 30, 2019.
Its paid-up capital is Tk 5.0 billion and authorised capital is Tk 5.40 billion, while the number of securities is 500.31 million.
The sponsor-directors own 31.54 per cent stake in the company, while institutional investors own 20.35 per cent, foreign 0.07 per cent, and the general public 48.04 per cent as on August 31, 2020.
Established in 1998, major activities of the Ring Shine Textiles is manufacturing and marketing of gray and finished fleece fabrics of various qualities, and dyed yarn to the ready-made garment (RMG) industry in Bangladesh.