VFS Thread sets up new machinery from IPO fund

FE Online Report | Published: March 10, 2019 12:46:36 | Updated: March 11, 2019 16:29:22

The VFS Thread Dyeing has informed that it utilised 100 per cent of its IPO fund and successfully implemented the set-up of new machinery.

Last year, the company raised a capital worth Tk 220 million by floating 22 million ordinary shares to purchase plant and machinery, repay bank loans, and bear the IPO expenses.

The new machine will increase the production capacity of the project by 1,972,071 lbs per year, said an official disclosure on Sunday.

Sales revenue of the company will be above 1.35 billion per year (approximately) and Tk 220 million profit after tax at optimum utilisation level, according to the disclosure.

Before installing the machine, the company had 4,382,380 lbs per year production capacity, it said.

The machinery is automatic brand new Thread Manufacturing Machine with Korea and Germany being the countries of origin.

Incorporated in 2010, VFS Thread Dyeing is a 100 per cent export-oriented manufacturer of sewing thread products.

The principal activities of the company are dyeing and finishing of sewing thread of different types for 100 per cent export-oriented readymade garments factories in Bangladesh.

Each share of the company closed at Tk 59.90 on Thursday last at the Dhaka Stock Exchange (DSE).


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