HR Textile allowed to issue bonus shares

The Bangladesh Securities and Exchange Commission (BSEC) has recently allowed HR Textile Mills Ltd — a 100% export oriented textile firm — to raise its paid-up capital through issuing stock dividends or bonus shares. 

The commission issued a letter in this regard last Wednesday. 

In the 2021-22 fiscal year, the company recommended 5% cash and 10% stock dividends for its shareholders.

Its paid-up capital is currently Tk26.56 crore, which will increase to Tk29.22 crore after the stock dividend adjustment. 

For this, the company has to issue 2.65 lakh ordinary shares at a face value of Tk10 each. 

As per the listing regulation of the Dhaka Stock Exchange (DSE), a company needs to have at least Tk30 crore as paid-up capital. 

HR Textile also decided to increase paid-up capital by issuing rights shares at a 1:1 ratio for the expansion of production facilities and repayment of high-priced loans from banks and financial institutions. 

In December 2021, the BSEC asked 64 companies to share their plans on how they would comply with the minimum paid-up capital requirement to remain on the main board of the bourses.

HR Textile Mills was listed on the stock exchanges in 1997. The company exports knit fabrics and garments to Canada, as well as other countries in Asia, and the European Union countries.

In the July to September quarter of the ongoing fiscal, the company's revenue stood at Tk68.56 crore, which was Tk83.23 crore in the same quarter of the previous year.

During the period, its net profit was Tk2.59 crore, which was Tk1.55 crore a year ago.

Its earnings per share stood at Tk98 and net asset value per share at Tk46.33.

In FY22, the net profit stood at Tk7.42 crore, which was Tk7.30 crore in FY21.

Till November 2022, sponsors and directors held 50.63%, institutional investors 5.88%, and general investors 43.49% shares in the company.

The last trading price of each share of the company was Tk115.90 at the DSE on Thursday.