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Reddot Digital Ltd, a 100 per cent subsidiary of the publicly traded Robi Axiata, is going to launch a new subsidiary "AxEnTec PLC" to provide IT solutions and digital services of Robi.
AxEnTec will engage in sales, distribution and marketing services for connectivity, ICT solutions, software applications and hardware, including data centre, cloud and cloud infrastructure, the Internet of Things (IoT), and cyber security.
The board of Reddot Digital has approved the scheme of demerger recently, subject to the consent of the High Court.
The new entity will have a registered office in Bangladesh, the company said in a regulatory filing on Wednesday.
However, Reddot will continue development and operations of IT and ICT software, applications and other related solutions, according to the filing.
The demerger of Reddot Digital will help Robi improve services to consumers through focused efforts by its subsidiaries, said Md Shahedul Alam, chief corporate and regulatory officer of Robi Axiata.
Robi has been making efforts to improve its services and expand its customer base, he added.
Reddot Digital is currently setting up its own office in the government's IT Park in Kaliakoir of Gazipur, aiming to support the government in meeting its digital goals.
In 2022, Robi also formed a 100 per cent subsidiary named "Smart Pay" for providing electronic payment and other related services to its customers.
Robi is the second-largest telecom operator in terms of subscribers and revenue and holds 30.2 per cent of the market share.
Having attained 4G leadership, Robi was the first company to launch 4.5G services in all 64 districts in 2018 and successfully conducted the first-ever trial of 5G technology in the same year.
The mobile phone operator started its journey in 1997 under the brand name of Aktel. It then changed its name to Robi Axiata in 2010.
Presently, Axiata Group of Malaysia holds the controlling stake in Robi at 61.82 per cent. Bharti Airtel of India holds 28.18 per cent, and the general public the remaining 10 per cent.
Robi posted a 5.52 per cent year-on-year profit growth to Tk 420 million for January-March, backed by higher revenue. Its revenue grew over 16 per cent to Tk 23.48 billion during the quarter on the back of data revenue.
The company's share price has been languishing at the floor price of Tk 30 on the Dhaka Stock Exchange since early August last year.
Recently, Robi has decided to receive a $55 million loan from its owner Axiata Group Berhad for three years.
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