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The Financial Express
Swasti Lankabangla Swasti Lankabangla

KDS Accessories to invest Tk 144.50m for automation

The company recommends 15pc dividend  


| Updated: October 19, 2020 17:10:50


KDS Accessories to invest Tk 144.50m for automation

The board of directors of KDS Accessories Ltd has decided to invest Tk 144.50 million (estimated) for finishing line automation.

The said amount will be used for procuring machineries and civil construction for finishing line automation of corrugated packaging which will increase the ability to maximise the total capacity utilisation with a variety of printing breakdown and product sizes, said an official disclosure on Wednesday.

After automation, the overall capacity utilisation can be increased by another 15 per cent from the existing ones. An additional 3,000,000 pieces carton box per year can be finished upon having order, the company said in the disclosure.

“It may generate approximate additional sales revenue of Tk 250 million annually,” said the company.

This project will be financed through a combination of bank loan and company’s own source, according to the company’s disclosure.

Meanwhile, the board of directors of the company has recommended 7.50 per cent cash and 7.50 per cent stock dividend for the year ended on June 30, 2020, another disclosure said on Wednesday.

The annual general meeting will be held on November 19 at 11:00am through a digital platform.

The record date is November 4.

The company has also reported EPS of Tk. 2.18, NAV per share of Tk. 24.99 and NOCFPS of Tk. 8.12 for the year ended on June 30, 2020 as against Tk. 2.09, Tk. 24.94 and Tk. 2.02 respectively for the same period of the previous year.

There will be no price limit on the trading of the shares of the Company today following its corporate declaration; however, as per the BSEC order dated March 19, 2020, the floor price shall be applicable accordingly.

Each share of the company, which was listed on the DSE in 2015, closed at Tk 50.90 on Tuesday.

Its share traded between Tk 33 and Tk 57.60 in the last year.

The company disbursed 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2019.

The company’s paid-up capital is Tk 662.16 million and authorised capital is Tk 2.0 billion while total number of securities is 66.21 million.

The sponsor-directors own 76.15 per cent stake in the company, while the institutional investors own 4.66 per cent, and the general public 19.19 per cent as on September 30, 2020, the DSE data show.

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