eGeneration owners to sell over 6% stake as lock-in period ends

Infograph: TBS

Just one month after the conclusion of a three-year restriction period, sponsor-directors of eGeneration Ltd — a listed firm in the information and technology sector — have decided to sell over a 6% stake worth around Tk17.36 crore in the secondary market.

The four sponsor-directors of the eGeneration, including its managing director and chairman, will sell around 47.82 lakh shares, which is equivalent to 6.37% of the total shares, out of their total holdings of 2.83 crore or 37.77% shares, according to the Dhaka Stock Exchange.

According to rules, after debuting shares trading on the bourses, the owners have a restriction to sell shares or holdings for the next three years, which is called the lock-in period.

During the period, the sponsor-directors may not sell shares. After that, if the sponsor-directors want to sell shares, they must have a declaration about shares selling through the bourses.

The shares of eGeneration debuted on 23 February 2021, and sponsor-directors shares became locked free in February this year.

Currently, 62.23% of the company's shares are freely traded in the market. This figure will increase to 68.6% after the share sale by the sponsor-directors. Then, the owners will hold 30% more than the mandatory holding requirement for sponsor-directors.

Regarding the significant amount of share sales, its company secretary Abdullah Al-Amin told TBS, "The sponsor-directors will sell shares on personal grounds."

According to a separate disclosure published on the stock exchanges yesterday, the owners expressed their intention to sell the shares within 30 working days at prevailing market prices through either the block market or the public market.

Shameem Ahsan, managing director, who is also a major shareholder of eGeneration, holds 22.71% or 1.70 crore shares of eGeneration, has expressed his intention to sell 10 lakh shares.

Earlier, in February eGeneration Solution Ltd, a placement holder of the company, where Shameem Ahsan is chairman and Syeda Karum Nahar is managing director, had expressed its intention to sell 4.67 lakh shares.

SM Ashraful Islam, chairman of eGeneration nominated by eGeneration Sourcing Ltd, expressed his intention to sell his entire stake of 2.82 lakh shares.

While Syeda Kamrun Nahar Ahmed, director of the company, decided to sell 10 lakh shares at the prevailing market price. She holds 8% stake or 60.03 lakh shares of the company.

Corporate director eGeneration Sourcing will sell 25 lakh shares out of its holdings of 5.35% stake or 40.14 lakh shares of the company.

eGeneration is a software development and implementation, management consulting, technology services and outsourcing company in Bangladesh, incorporated in 2003.

In October 2020, the Bangladesh Securities and Exchange Commission allowed eGeneration to raise Tk15 crore from the stock market through an initial public offering (IPO) under the fixed price method.

It raised funds for purchasing commercial spaces, loan repayment and developing a digital healthcare platform. Most of the funds were used to purchase commercial spaces.

In the last fiscal 2022-23, eGeneration reported a 6% growth in revenue over the previous fiscal year, and its net profit by 1.39% to Tk58.42 crore and Tk10.89 crore, respectively.

It paid a 10% cash dividend to its shareholders for FY23.

In the first half of the current fiscal year, its revenue grew by 27% to Tk38.15 crore, and profit by 1.16% to Tk6.09 crore.