GPH to invest Tk 60m more in Star Allied Venture

GPH Ispat Ltd is going to invest Tk 60 million more in Star Allied Venture Ltd, which has recently been decided at a board of directors meeting.

The investment will be made as equity against purchase of 50 acres of land at Mirsarai Economic Zone in Chattogram to set up a TBR Tyre Factory, the company said in an official disclosure.

In the disclosure, the company cited that this fresh funds (Tk 60 million) is the additional amount of an earlier Tk 2.50 million investment as equity.

Earlier, the GPH Ispat also invested as equity for 25,000 ordinary shares of Tk 100 each and the total value of the investment was Tk 2.50 million.

The Star Allied Venture will form a joint venture company with Yunnan Yongle Overseas Investment Co Ltd. (a subsidiary of Kunming Iron and Steel Holding Co Ltd, a state owned company of China Government).

The purpose of the formation of this joint venture (JV) company is to establish a JV investment in Bangladesh with an amount of US$ 2.30 billion.

On the premier bourse on Thursday, each share of the company traded between Tk 33.90 and 34.20, before closing at Tk 34.

The company’s earnings per share (EPS) stood at Tk 0.64 for January-March 2019 as against Tk 0.63 for January-March 2018.

The EPS was Tk 1.57 for July 2018-March 2019 as against Tk 1.44 for July 2017-March 2018.

The net operating cash flow per share (NOCFPS) was Tk 1.51 for July 2018-March 2019 as against Tk 0.29 for July 2017-March 2018.

The net asset value (NAV) per share was Tk 16.92 as on March 31, 2019 and Tk 15.35 as on June 30, 2018.

The GPH Ispat, which was listed on the DSE in April 2012, disbursed 10 per cent stock dividend for the year ended on June 30, 2018.

The company’s paid-up capital is Tk 3.60 billion, authorised capital is Tk 10 billion, and the total number of securities is 360.18 million.

Sponsors hold 49.61 per cent stakes in GPH Ispat, institutions 15.89 per cent, and general investors the remaining 34.50 per cent.

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