Tamijuddin Textile, Lub-rref to invest in BMRE

Two listed companies -- Tamijuddin Textile Mills and Lub-rref (Bangladesh) – have announced that they will invest in BMRE (Balancing, Modernization, Rehabilitation and Expansion) to increase production capacity and earnings.

The two companies made the announcement as price sensitive information through the Dhaka Stock Exchange on Wednesday.

According to the DSE, Tamijuddin Textile will invest Tk 50 crore in BMRE.

Following approval from the company’s board of directors, Tamijuddin Textile said that the source of the fund will be financed by its own equity and bank loan.

Most of the machinery will be added or replaced gradually from China, Japan and European countries with state-of-the-art spinning production facilities, it said.

The ‘Z’ category company of DSE also expects that a significant value addition will come in terms of the company’s profitability, yarn quality, production capacity and efficiency following the BMRE investment.

The company’s share price soared 3.28 per cent to Tk 85 following the price sensitive information on Wednesday.

Coming back from the OTC (over the counter) market to regular market trading, the company’s share price jumped 584 per cent within one month.

The company’s regular market trading started on June 13. The share price was Tk 13.2 that day which stood at Tk 90.3 on July 15.

Meanwhile, Chattogram-based fuel refinery company Lub-rref (Bangladesh) will relocate its refinery station in its own land and also establish a new refinery project, which will be well sighted within the orbit of KPI-1 Eastern Refinery Limited across the river Karnaphuli.

The new refinery project is assisted by Green Transmission Fund (GTF), a refinance scheme by the Bangladesh Bank.

According to the price sensitive information, separation of refinery plants of the company to different locations is necessitated by the current energy policy.  

Relocation shall increase the production capacity to a great extent and help to increase earnings per share by way of additional revenue income.

It will make the project export-oriented and enable earning of huge foreign currency per annum through import substitution and re-export. Relocation will also increase huge revenue from the ship berthing facility generating additional revenue income from its accompanied berth operating jetty.

The proposal is subject to the approval of the shareholders, so the company will arrange an EGM on October 20.