The Financial Express

Tamijuddin Textile Mills to invest Tk 500m in BMRE

| Updated: August 29, 2021 09:32:37

Tamijuddin Textile Mills to invest Tk 500m in BMRE

Tamijuddin Textile Mills, which returned to the bourse's main market two months back, has decided to invest in balancing, modernisation, rehabilitation and expansion (BMRE) an estimated amount of Tk 500 million.

Tamijuddin Textile backed to the Dhaka Stock Exchange's main market on June 13 this year along with three other companies, after staying on the over-the-counter (OTC) market more than a decade since 2009 due to its poor performance.

"The fund investment will be financed with its own equity and bank loan," said the company in a filing with the Dhaka Stock Exchange (DSE) on Wednesday.

Most of the machinery will be added, or replaced, gradually from China, Japan and European countries with state-of-the-art spinning-production facility, according to the filling.

The textile maker expects that after execution of the BMRE a significant value addition will come in terms of company's profitability, yarn quality, production capacity and efficiency, said the filing, without elaborating.

Following the news, the company's share price soared nearly 6.0 per cent to close at Tk 87.20 on Wednesday.

Its share price had jumped more than 560 per cent or Tk 74 each within 10 weeks since it got back to the bourse's main market. The textile maker's share price was Tk 13.20 each on June 13 this year.

The company has reported earnings per share (EPS) of Tk 0.30 for January-March 2021 quarter as against Tk 0.11 for January-March 2020.

In nine months, its EPS was Tk 0.98 for July 2020-March 2021 as against Tk 0.81 for July 2019-March 2020.

The Bangladesh Securities and Exchange Commission (BSEC) said the commission allowed the company in the main market from OTC market following its application and improvement in its business condition.

The company was trading in the "Z" category and the status would continue until the next annual general meeting (AGM).

Thereafter, the categorisation will be determined as per relevant provisions.

Tamijuddin Textile's paid-up capital is Tk 300.65 million, authorised capital is Tk 350 million and the total number of securities is 30.06 million.

Its sponsor-directors own 56.22 per cent stakes in the company while the general public own 43.78 per cent as of June 30, 2020 (year-end), the DSE data show.

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