Genex to invest Tk1,000cr to boost trade

Genex Infosys Limited, a publicly traded company, plans to invest Tk 1,000 crore to expand business in a bid to make 3 lakh value-added tax (VAT) machines for the National Board of Revenue (NBR). 

The machines will be supplied under a 10-year agreement signed recently between the two parties, which was approved by Genex’s board of directors on Sunday. The company expects it will earn over Tk 200 crore a year through the contract.

“Genex will supply NBR with 60,000 electronic fiscal devices (EFD) and sales data controller (SDC) machines every year for the next 5 years,” Genex’s Company Secretary  Md Jewel Rashed Sarker told The Business Post (TBP). 

The company will invest Tk 200 crores annually for the next five years to that end, he said, adding that the contract is expected to generate approximate gross revenue of Tk212 crore per year for Genex. 

Genex will distribute EFDs and SDCs among eligible retailers and wholesalers in five commissionerates of VAT in Dhaka and Chattogram to ensure the collection of VAT and SD. The company will also monitor the operation of the installed machines.

Genex Infosys will also develop a software solution, termed VAT API system for interfacing with EFD/SDC machines and integrating with ERP/POS solutions existing in the market.

Meanwhile, Genex signed a separate agreement with Standard Chartered Bank to provide banking solutions, which will earn the company Tk 6 crore per year.

Also, in the same month, the company signed another agreement with telecom operator Banglalink Digital Communication Limited. Under the agreement, Genex will provide services to Banglalink’s sales and service points across the country, which is expected to earn the IT firm about Tk 12 crore per annum for five years.

Apart from Banglalink, the company is also providing call centre services to three other mobile operators in the country– Grameenphone, Robi and Airtel. Genex also provides IT services to 100 organisations in the country and outside the country. 

According to Dhaka Stock Exchange (DSE) data, Genex was listed in the capital market in 2019. At present the firm has over 11.35 lakh shares in the market. Out of this, the directors of the company hold 31.68 per cent shares. As of September this year, institutional investors held 22.71 per cent shares of the company, foreign investors held 0.06 per cent and general investors 45.55 per cent, according to data from DSE’s website.

According to information received from the Dhaka Stock Exchange (DSE), the company’s shares were traded at Tk 105.70 on Monday.