Aamra Networks cleared for raising Tk93cr through right shares
The share price of Aamra Networks dropped by 2.78% to Tk56 on the Dhaka stock exchange on Wednesday.
The Bangladesh Securities and Exchange Commission (BSEC) has granted permission to Aamra Networks Limited, a publicly listed internet service provider, to raise Tk93 crore by issuing 3.10 crore rights shares on the stock exchanges. This capital will be utilised for loan repayment, network system upgradation and network coverage expansion.
The securities regulator gave the approval in its meeting on Wednesday. The share price will be Tk30 each, including a premium of Tk20, according to a press release issued by the Commission.
The share price of Aamra Networks dropped by 2.78% to Tk56 on the Dhaka stock exchange on Wednesday.
Aamra Networks specialises in providing advanced IT communication solutions and services, including Internet access, web development and hosting, leased port Internet access, total network solutions, video conferencing, IT support services, and software development and maintenance.
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According to the right offer documents, the company will use Tk10.42 crore in the networking system upgrade, Tk60.41 crore for network coverage expansion, Tk21 crore for loan repayment, and Tk1.15 crore for right share expenses.
Earlier the company announced that the firm will issue 3.09 crore right shares at a ratio of 2:1. This means, one new share will be issued against two existing shares held by an individual investor.
At present, Aamra Networks has a paid-up capital of Tk61.98 crore and a total number of shares of 6.19 crore, with more than 300+ employees spread nationwide.
According to the company, the IT firm has consistently provided its customers with state-of-the-art ISP, IOT, IT & ITES solutions over the last decade. It also has achieved credibility from its clients to provide stable and consistent connectivity solutions.
The company is one of the 18 concerns of Aamra Group. Starting its journey in 1985, the group has diversified investment in the ICT, Textile, and Lifestyle sectors in Bangladesh.
In the first half of the current fiscal year, the company achieved revenue of Tk68.57 crore, which was Tk61.57 crore in the same period of the previous year.
Of this, Tk42.68 crore came from internet, WIFI bandwidth, and equipment sales. Tk20.35 crore came from IT support and software, and Tk8.27 crore came from the EPZ project.
During the period, its profit after tax increased by 6% to Tk14.70 crore from Tk13.86 crore compared to the same period of the previous year.,
In the first nine months of the 2022-23 fiscal year, the company's long-term loan was Tk39.87 crore, and its short-term loan was Tk17 crore.
In the first half of FY24, the company's earnings per share stood at Tk2.37 and its net asset value per share was Tk39.39.
In the October to December quarter, its revenue stood at Tk31.69 crore, which was Tk27.67 crore in the same period a year ago. Its net profit stood at Tk7.04 crore, down from Tk7.73 crore compared to the same period of the previous year.
As of 31 January 2024, sponsors and directors jointly held 33.04% shares, institutions 21.44%, and general investors 45.52% of the company.
In July 2017, the company raised Tk56.25 crore from the capital market for business expansion. Another concern of Aamra Companies – Aamra Technologies Limited, an internet gateway service provider – was also listed on the capital market in 2012.
In the last month, the Bangladesh Telecommunication Regulatory Authority (BTRC) capped 80% bandwidth capacity of Aamra Technologies Limited as the company did not clear the government's revenue sharing dues.
