BSEC greenlights Craftsman Footwear's public listing

Craftsman Footwear and Accessories Ltd, a shoe manufacturer focused on exports, received approval from the stock market regulator to raise Tk5 crore through a qualified investor offer (QIO) within the SME platform of the Dhaka Stock Exchange (DSE).

The Bangladesh Securities and Exchange Commission (BSEC) gave the approval in a meeting held on Wednesday.

As per BSEC approval, Craftsman Footwear will issue 50 lakh shares at a face value of Tk10 each. However, the company will not be able to declare any stock dividend for three years from its stock market listing.

The footwear exporter, as mentioned in its draft prospectus, intends to utilise the funds raised for business expansion, working capital and the repayment of bank loans.

Green Delta Capital Ltd is acting as the issue manager to bring the company to the capital market.

Sadat Hossain Salim, managing director of Craftsman Footwear, informed The Business Standard, "We intend to familiarise ourselves with the share market via the SME platform. This will allow investors to evaluate our performance. We plan to transition to the main market of DSE in the next 4-5 years."

In 2017, the Craftsman started operation as a shoe manufacturer for the export market with 35 employees at a small factory unit in Joina Bazar of Sreepur upazila in Gazipur. Now, the company has a state-of-the-art manufacturing facility with a 1,00,000-square-foot factory with over 800 manpower.

Craftsman Shoes has already introduced its brand name in the local market and ensured its presence in the online space as well. Shoes for local sales are produced at a separate unit of the company.

"We have a plan to set up a physical store for local customers," said Salim.

In the fiscal year 2022-23, the company reported footwear exports amounting to Tk71 crore, while local sales reached Tk2.20 crore.

The net profit of the company was Tk4.27 crore in the last fiscal year.