Aamra firms struggle with fund crisis, fall into non-compliance

Infographic: TBS

Two listed companies under the Aamra Group, Aamra Technologies and Aamra Networks, are grappling with severe business challenges and a liquidity crisis, which have pushed them into non-compliance with regulatory requirements. 

Both firms failed to disburse declared dividends within the stipulated time frame, leading to their downgrade to the Z category by the Dhaka Stock Exchange (DSE) on 12 February.

As per listing regulations, listed companies must disburse declared or approved dividends within 30 days of approval at their annual general meeting (AGM). The two companies approved their declared dividends at the AGM held on 31 December but have yet to disburse them.

Aamra Technologies had declared a 1% cash dividend, amounting to Tk65 lakh, while Aamra Networks announced a 10% cash dividend, totalling Tk9.29 crore, for the last fiscal year.

A senior official from the Aamra Group, speaking on condition of anonymity, revealed that this is the first time the two companies have been downgraded to the Z category since their listing. 

The official attributed the non-payment of dividends to an acute fund crisis caused by delayed payments from clients.

"Aamra Networks primarily serves corporate clients, many of whom have not cleared their dues for services rendered. This has severely impacted the company's cash flow," the official said.

Meanwhile, Aamra Technologies' faced a significant setback due to restrictions imposed by the Bangladesh Telecommunication Regulatory Commission (BTRC). 

In May last year, the BTRC capped the company's bandwidth capacity at 100% as an internet gateway service provider due to its failure to clear government revenue-sharing dues. This restriction brought the company's operations to a near standstill, resulting in substantial losses.

"The company has been trying to resolve the issue with the BTRC, but the matter remains pending. The restriction has severely hampered the company's business," the official added.

Aamra Technologies, which was listed on the capital market in 2012 at an issue price of Tk24 per share including a Tk14 premium, now trades at Tk15.20, marking a 37% decline from its initial public offering (IPO) price.

Similarly, Aamra Networks, listed in 2017 through a book-building method IPO at Tk39 per share including a Tk29 premium, currently trades at Tk23.50, a 40% drop from the issue price. In 2024, the company raised Tk93 crore through a rights issue at Tk30 per share including a Tk20 premium.

The downgrade to the Z category and the ongoing financial difficulties have raised concerns among investors about the future prospects of the two companies. 

Analysts suggest that resolving the liquidity crisis and regulatory issues will be critical for the firms to regain investor confidence and stabilise their operations.

Syed Farhad Ahmed, managing director of the Aamra companies, remained unavailable for comment despite multiple attempts to reach him. Calls to his mobile phone went unanswered, and he did not respond to a message sent via WhatsApp seeking his remarks on the ongoing challenges faced by Aamra Technologies and Aamra Networks. 

Aamra Technologies incurs loss, other profit shrinks

During the July-December period of FY25, Aamra Technologies' revenue plummeted 71% to Tk13.73 crore, while it incurred a loss of Tk4.13 crore.

The company, in its financial statement, attributed its decline to BTRC's prolonged restrictions on its international internet gateway (IIG) business and a slowdown in IT infrastructure investments amid economic uncertainty.

It said the countrywide unsettled situation for a prolonged period had a substantial influence on the company's turnover, resulting in a significant decline in profit.

In FY24, its revenue dropped by 59% to Tk63 crore compared to the previous year, where it suffered a loss of Tk0.79 crore.

Aamra Networks also faced a downturn, with revenue shrinking 27% to Tk49.91 crore in the first half of FY25, and net profit dropping 60% to Tk5.86 crore compared to the same period of the previous fiscal.

However, despite a revenue decline in FY24, its net profit slightly increased to Tk22.87 crore.