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Anwar Galvanizing Ltd is all set to invest Tk 27.37 crore for the expansion of its factory in Tongi of Gazipur.
Through the investment, the iron-pipe fittings (GI fittings) manufacturer aims to double its production and reduce dependency on imports.
The company made the disclosure through a news filing with the Dhaka Stock Exchange (DSE) on Tuesday.
According to the disclosure, the company’s board of directors approved the expansion plan with a view to increasing the production by 2,417 metric ton per annum.
Upon completion of the expansion process, the company’s total manufacturing capacity will stand at 4,725 metric tons per annum, up from its present capacity is 2,308 metric tons per annum.
The expansion project, which will be funded from the company’s own resources and borrowed finance, is expected to be completed by the end of 2022.
It has already received sanction letter, dated May 23, from the Dhaka Electric Supply Company for an additional power supply of one megawatt, in favour of the expansion.
Thanks to increased production, the market share of the company is expected to double.
The filing added that the additional quantity produced will directly replace the products that are now being imported and the market share thus will increase from 25 per cent to 52 per cent
Tauhidul Islam, company secretary of Anwar Galvanizing, told The Business Post, “We estimated the market share as per our own calculations, there was no third party involved in this regard.”
However, he declined to make further comments about the expansion.
According to the Dhaka Stock Exchange data, Anwar Galvanizing’s current market capitalisation is Tk 488 crore. Its share price has been increasing continuously since May. The price rose to Tk 341 on Tuesday, 196 per cent up from Tk 115 of May 2. The price earnings ratio (P/E) is 164.14 per cent.
As of July 31, the public were holding 41.17 per cent, sponsor director 35.32 per cent, and institute 23.51 per cent of the company’s total shares.
There was no government and foreign shareholders in the company.
Anwar Galvanizing Limited, a sister concern of Anwar group, went into operation in mid 1980s with the production of galvanized corrugated sheets.
The company was listed on the stock exchanges in 1996. It is carrying out capital market business under ‘A’ category at the DSE by providing dividends regularly.
It distributed cash dividend for most of the years. In 2020, the company disbursed 10 per cent cash and 5 per cent stock dividends to the shareholders.
The authorised capital of the company is Tk 20 crore, when the paid-up capital is Tk 15.24 crore. The number of the outstanding securities is 1.52 crore.
According to the financial statement for the first nine month (July-March) of FY21, the company’s revenue increased 11 per cent compared to the same period of the previous financial year.
At the same time, its after-tax profits increased around 49 per cent to stand at Tk 3.24 crore. The profit was Tk 2.17 core during the same period of FY20.
