Sonali Aansh denied approval to acquire sister concern
The BSEC suggests the company find other ways to raise paid-up capital
The Bangladesh Securities and Exchange Commission (BSEC) has turned down Sonali Aansh Industries Limited's proposal to acquire its sister concern Nip Chemicals & Pharmaceuticals Ltd.
The company wanted to increase its paid-up capital by Tk27.79 crore to meet the regulatory threshold of Tk30 crore through the acquisition.
But the BSEC instructed the company to come up with other ways to increase its paid-up capital.
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Company Secretary Maqsood Ahmed said he was informed about the regulator's letter but was yet to know the details.
The company's current paid-up capital is Tk2.71 crore. It may have to issue bonus shares, or right shares, or go for a repeat public offering (RPO).
Shareholders will have to wait for the company's next board meeting to learn the ultimate decision.
In December 2021, the BSEC asked 64 listed small-cap companies to raise their paid-up capital to at least Tk30 crore to comply with regulatory obligations by 30 June 2022.
As per the 2015 stock exchange listing regulation, any company listed with the main board of the stock exchanges is required to maintain at least Tk30 crore paid-up capital.
According to the financial statements, Sonali Aansh bagged multi-year high profits in the first nine months of the 2021-22 fiscal year.
From July to March 2022, its revenue stood at Tk41.54 crore and net profit Tk0.83 crore.
During the period, its earnings per share (EPS) stood at Tk3.05, which was only Tk0.75 a year ago.
At the end of March, its net asset value per share stood at Tk228.71.
In fiscal 2020-21, its revenue was Tk50.64 crore, and its net profit was Tk0.31 crore. Its EPS stood at Tk1.13.
The company recommended a 10% cash dividend for its shareholders for FY21.
Sonali Aansh Industries Limited was incorporated in 1981 and started production in 1982. It was listed on the Dhaka Stock Exchange (DSE) in 1985.
As of 31 August 2022, sponsors and directors jointly held 50.78%, institutions 5.63%, and the general public 43.59% shares in the company.
The last trading price of its shares was Tk605.30 each at the DSE on Sunday.
Bangladesh exports 282 types of jute products to around 135 countries, according to the Export Promotion Bureau (EPB).
In the first nine months of the current fiscal, the country's jute and jute goods export increased by 15.71% to $245.65 million, compared to the same period of FY22.
