IFAD Autos to purchase land for expansion

Its share price drops 2.0pc despite the news


FE Report | Published: August 17, 2018 10:55:33 | Updated: August 19, 2018 12:22:42


IFAD Autos, an automobile dealer, has decided to purchase more 90 decimal of land adjacent to its factory at Dhamrai for future expansion of the company's business.

The total cost of the land is Tk 11.35 million, including all land development cost, registration fees and other expenses, and the amount shall be paid from the own fund, said a disclosure posted on the Dhaka Stock Exchange (DSE) website on Thursday.

Within three months, the engineering sector company announced to purchase a total of 724 decimal of land at a cost of Tk 65.50 million.

Earlier on July 8 last, the company declared to purchase 190 decimal of land at a cost of Tk 2.47 million. On June 7 last, it announced to buy 444.25 decimal of land at a cost of Tk 2.94 million, including all registration fees.

The engineering sector company, which was listed on the DSE in 2015, floated 21.25 million ordinary shares at an offer price of Tk 30 each, including Tk 20 as premium, and raised a fund of Tk 637.50 million.

Last year, the company also raised a capital worth over Tk 1.24 billion through issuing 62.19 million rights shares for expansion of the business, meeting the requirement of working capital and pay-off debts.

Each share of the IFAD closed at Tk 123.30 on Thursday, registering a decline of 2.0 per cent over the previous day.

The company's total turnover stood at Tk 11.28 billion in nine months for July 2017-March 2018. It made a profit (un-audited) of Tk 1.19 billion during the nine months period, according to statistics from the Dhaka bourse.

The company's earnings per share (EPS) stood at Tk 5.40 for July 2017-March 2018 against Tk 3.61 for July 2016-March 2017.

The net operating cash flow per share (NOCFPS) was Tk 7.55 negative for July 2017-March 2018 as against Tk 9.95 negative for July 2016-March 2017.

The net asset value (NAV) per share was Tk 36.74 as on March 31, 2018 and Tk. 38.61 as on June 30, 2017.

IFAD Autos disbursed 21 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017.

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 16.49 per cent, foreign investors 4.94 per cent and the general public 15.80 per cent as on July 31, 2018, the DSE data shows.

The automobile dealer's main activity is importing, marketing and body building of different models of Ashok Leyland's vehicles from India.

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