Nialco Alloys to set up new plants
It is the only company to be listed on the SME platform of the Chattogram Stock Exchange
Nialco Alloys Limited will set up two new plants to manufacture finished products to expand its business.
It is the only company to be listed on the SME platform of the Chattogram Stock Exchange.
The export-oriented company mainly manufactures high-grade bronze and brass ingots.
An official at Nialco Alloys said it will invest more than Tk2 crore in the new plants – an Aluminium Manufacturing Plant and an Aluminium Zink Recycling Plant – and the project cost will come from the bank credits.
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"The demand for copper products is increasing globally. Most of the Nialco Alloys products are exported to different countries, especially Japan and Korea, as raw materials. The company has no major competitor in the country," he told The Business Standard, seeking anonymity.
The production capacity of the new plants will be 100 tonnes per month.
According to data available with the CSE, the company will open an L/C with Mutual Trust Bank Limited.
The company is expected to complete setting up the plants in seven to nine months.
On 15 April this year, the Bangladesh Securities and Exchange Commission approved the company to raise Tk7.5 crore through the SME platform.
MTB Capital, a sister concern of Mutual Trust Bank Ltd, was the issue manager of the company.
According to a financial report, in the July-September quarter of 2020, the company revenue was Tk20.56 crore, and net profit was Tk1.39 crore.
During this period, the earnings per share were Tk0.91 and net asset value per share stood at Tk12.43 without revaluation reserve.
The last share price of the company at CSE was Tk16.90 on Wednesday.
Sponsors and directors jointly hold a 73.14% stake in the company, institutional investors 26.31%, and general investors 0.55%.
