Losses of Ring Shine Textiles pile up

Ring Shine Textiles Ltd, in the first nine months of the 2022-23 fiscal year, has reported a per share loss of Tk1.49, which was Tk0.94 in the July to March period of the previous fiscal.

According to the company's un-audited financials, its loss per share in the January to March quarter of 2023 stood at Tk0.73, which was Tk0.59 in the same quarter a year ago.

Its shares are trading below face value at Tk9.8 apiece at the Dhaka Stock Exchange (DSE) since September last year.

Ring Shine got listed on the stock market in 2019. Soon after its listing, the Covid-19 pandemic happened and the company fell into a crisis because of a lack of demand for its products from foreign buyers.

As a result, the company had to shut down its production back then. At present, it's running partially.

Earlier, the Bangladesh Securities and Exchange Commission (BSEC) had reconstructed its board in order to revive the company.

Wise Star Textile Mills Ltd – a private firm run by the listed Queen South Textile's managing director – has decided to take over the struggling Ring Shine Textiles after the approval of its general investors.

The board of directors has decided to hold an extraordinary general meeting (EGM) to consider the proposed takeover of sponsor-directors' shares of the company by Wise Star Textile Mills Ltd and its nominees.

The EGM will be virtually held on 20 June this year, said the company in a disclosure through the stock exchanges.

Ring Shine Textiles was the first big manufacturing company that raised Tk150 crore from the stock market under the fixed price method.