Maksons plans for home textile unit
Star Business Report
Maksons Spinning Mills, a listed company, has planned to set up a fully export-oriented composite home textile unit that promises to add Tk 300 crore to total turnover a year.
To set up the unit, the company has announced a plan to raise funds through issuing rights shares.
As part of the plan, the company’s Board of Directors yesterday recommended two rights shares against one existing share at an offer price of Tk 25, which includes Tk 15 in premium.
A portion of the raised fund will be used for paying off high-cost debt that will increase the profitability of the company, it said in a statement.
The rights offer is subject to approval from the Securities and Exchange Commission.
The company that listed on stockmarket in 2008 said the proposed unit would be an integrated textile industry with weaving, dyeing, printing, finishing and garments sections.
Maksons expects the implementation of the proposed unit will drive total turnover to Tk 400 crore a year.
The board members at yesterday’s meeting also decided to increase authorised capital from Tk 100 crore to Tk 500 crore.
Chaired by Maksons Chairman Abdul Ali, the meeting was attended by, among others, Managing Director Mohammad Ali Khokon.
Each Maksons share traded between Tk 107.70 and Tk 111 on Dhaka Stock Exchange yesterday.
Presently, sponsors hold a 41.2 percent share in the company, while institutions have a 26.15 percent stake and the public holding is 32.65 percent.