SS Steel to invest in Al-Falah Steel
After buying equity shares, SS Steel will further invest Tk96.68 crore in Al-Falah Steel as a share money deposit
Publicly listed SS Steel Limited will invest in Al-Falah Steel and Re-rolling Mills Limited by acquiring 99% of its shares at Tk87.46 crore.
After that, SS Steel will further invest Tk96.68 crore in Al-Falah Steel as a share money deposit. Al-Falah Steel will issue new shares to SS Steel for this investment.
Al-Falah Steel and Re-Rolling Mills Limited, a reputed steel manufacturing company in Bangladesh, is engaged in steel production and sales. The firm can produce around 64,800 tonnes of steel per year.
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SS Steel expects that this investment will add around Tk450 crore turnover to Al-Falah Steel annually and substantially increase the company's profitability.
SS Steel will finance the investment from its retained earnings and bank loans.
From July to December 2021, SS Steel's revenue was Tk319 crore, which is 11% higher than that in the same period of 2020.
During the period, SS Steel's net profit was Tk44.94 crore, and earnings per share were Tk1.37.
Sponsors and directors hold 31.69%, institutional investors 10.76%, and general investors 57.45% shares in SS Steel.
At the end of Wednesday's trading session, SS Steel share's closing price was Tk17.60 each at the Dhaka Stock Exchange.
