Home ›› 23 Aug 2021 ›› Stock
IFAD Autos Limited has decided to invest Tk 80 crore to purchase 40 per cent shares of its sister concern IFAD Multiproducts.
The publicly traded company came up with the disclosure through a news filing with the Dhaka Stock Exchange (DSE) on Sunday, saying that the entire acquisition will be financed from its own fund.
The decision, which was taken at the company’s board meeting recently, will come into effect once the company’s shareholders approve it in the forthcoming general meeting, the disclosure added.
IFAD Multiproducts Limited is a sister concern of IFAD Autos, and operates under a shared management.
On Sunday, share price of IFAD Autos rose 4.42 per cent to close at Tk 56.70 at the Dhaka bourse. Last year, the company’s share price jumped to Tk 61.80 from Tk 38.50. According to the DSE data, IFAD Autos’ paid-up capital is Tk 253 crore, while the authorised capital is Tk 300 crore.
As of July 31, the sponsor directors were holding 54.87 per cent shares of the company, while institutes 26 per cent, foreign investors 0.83 per cent and the public were holding 18.30 per cent of the total shares.
The company was listed on the stock market in 2015. It carries out share trading under ‘A’ category by disbursing dividends regularly. It provided 9 per cent cash and 2 per cent stock dividend to the shareholders last year.
IFAD Autos witnessed a 13 per cent rise in its earnings in the first nine months of the fiscal year 2020-21.
It reported earnings per share (EPS) of Tk 2.17 for July 2020-March 2021 period, against Tk 1.92 of the previous fiscal’s corresponding period.
The company reported lower deliveries last year after being hit hard by the coronavirus pandemic.
According to its last annual report, IFAD Autos’ delivery declined in all segments of the business, except buses and light commercial vehicle (LCV).
It posted revenue of Tk 777.28 crore for FY 2019-20, representing year-on-year decline of 29.45 per cent.
The company ended the year with 4,081 vehicles sold.
In FY20, it recorded gross profit of Tk 133.57 crore, net profit around Tk 23 crore, cost of goods sold Tk 643.71 crore. The net profit was Tk 113.7 crore for the fiscal year 2018-19.
IFAD Autos mainly imports and sells light, medium and heavy truck chassis, different types of bus chassis such as AC buses, deluxe buses, tractors and special vehicles like dump truck, water tankers, and prime movers.
The company has been the sole distributor of Indian automobile manufacturer-Ashok Leyland in Bangladesh since 1994.
The company imports different models of complete Ashok Leyland’s vehicles as well as imports CKD & spares and assembles locally to promote in Bangladesh.
The company also deals with Farmtrac brand agri machineries and related spares imported from Escorts and market the same in Bangladesh.
The company also has a joint venture agreement with Gulf Oil International Limited (UK) to subscribe 49% of its equity shares of Gulf Oil Bangladesh Limited.
