Home ›› 09 Nov 2021 ›› Stock
Taufika Foods and Lovello Ice-cream PLC has decided to revise the expenditure plan of its Tk 30 crore fund raised from the capital market through initial public offerings (IPO).
Subject to regulatory approval, the listed ice-cream manufacturer will now spend the proceeds to purchase Rollo Stick Ice-Cream Machine and Associate Machinery, instead of Cone Baking Machine.
The change was made in order to cope up with the changing market demand and increase production capacity by a considerable volume, said the company in a news filing with the Dhaka Stock Exchange on Monday.
The board of directors has already cleared the revised plan. Now the company will hold an annual general meeting (AGM) on December 28 to get the change approved by the shareholders, added the filing.
Lovella raised Tk 30 crore by offloading three crore ordinary shares with a face value of Tk 10 each.
The company used about Tk 9 crore of the proceeds for acquiring a plant and purchasing machinery, Tk 5.8 crore for freezer purchase, Tk 2 crore for vehicle purchase, Tk 1.32 crore for increasing storage capacity, and Tk 9 crore for repaying bank loans.
The ice-cream maker recommended an 11 per cent cash dividend for the year ending on June 30.
The company made a good profit in the financial year 2020-21 despite significant decline in sales caused by the pandemic.
It logged a profit of Tk 9.5 crore for the FY21, up by 53 per cent from Tk 6.2 crore of FY20.
Taufika Foods and Lovello Ice-Cream PLC was incorporated as a private limited company in 1994. Later, the company was converted into a public limited company in 2019 and was enlisted with Dhaka and Chattogram bourses in February this year.
Recently, it changed its name from Taufika Foods and Agro Industries Limited to Tauflka Foods and Lovello Ice-Cream PLC.
