Runner Automobiles, a listed company with the stock market, is going to set up a three-wheeler manufacturing plant in Bangladesh with the association of Indian automobile giant Bajaj Auto Ltd.
The Board of Directors of Runner Automobiles is set to sign an agreement with the Indian company to set up the plant with a cost of Tk 3.0 billion.
The Runner Auto informed that they will invest approximately Tk 3.0 billion, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and taken approval from Bangladesh Securities and Exchange commission.
Under the agreement, Runner will manufacture and distribute Bajaj’s RE 4S three-wheeler in Bangladesh and will take necessary technical support for localisation of parts and components, assembling and manufacturing of vehicles from Bajaj Auto.
This will be the first ever three-wheeler manufacturing set-up of a global brand in Bangladesh, according to an announcement on the Dhaka Stock Exchange (DSE) website on Wednesday.
By setting up the manufacturing plant with ensuring quality, availability and affordable price, Runner’s presence in the three-wheeler market will be further strengthened, the company hoped in the announcement.
The Runner Automobiles, which made trading debut on May 21, last year, raised a capital worth Tk 1.0 billion from the capital market under the book-building method.
Each share of the company closed at Tk 58.80 on Wednesday at Dhaka bourse, losing 0.68 per cent over the previous day.
Its share traded between Tk 39 and Tk 80.80 in the last one year.
The company’s paid-up capital is Tk 1.13 billion and authorised capital is Tk 2.0 billion while the total number of securities is 113.53 million.
The sponsor-directors own 50.04 per cent stake in the company, while the institutional investors own 26.44 per cent and the general public 23.52 per cent as on July 31, 2020, the DSE data shows.
Started journey in 2000, Runner Automobiles manufactures 12 different types of motorcycles ranging between 80 CC and 150 CC. It has 15 per cent market share in the country’s auto industry. The company is marketing three-wheelers and four-wheelers of Bajaj Auto. The company is also exporting motorcycles to Nepal and Bhutan.