Alif Industries plans to issue new shares to raise capital

Alif Industries Ltd, a subsidiary of Alif Group, has planned to issue new shares to raise capital to Tk 200 crore subjected to the approval of the securities regulator.

The decision was taken at its board meeting, said the company in a filing with the Dhaka Stock Exchange on Tuesday.

The new shares will be issued in favour of the prospective shareholders or investors at a price of the latest annual audited Net Asset Value (NAV) per share of the company subject to the approval of shareholders in the upcoming annual general meeting (AGM) and Bangladesh Securities and Exchange Commission.

The AGM is scheduled for December 12, 2021.

Its NAV per share increased more than 7 per cent to Tk 21.66 for the year ended on June 30, 2021 as against Tk 20.21 for the same period a year earlier.

It reported earnings per share (EPS) of Tk. 1.45 as against Tk. 1.02 during the period.

The group company came into the discussion by acquiring CNA Textile, a Z category listed company on the stock exchange.

In November this year, Alif Group reached an agreement with C&A Textiles to take over the firm that has not been in production for a long time.

Earlier, the group announced the acquisition of Central Pharma and BD Welding, leading to a significant increase in the share prices of the companies. But later it backtracked from the acquisition decision.

The BSEC also fined Alif Group's managing director and others for manipulating shares of Legacy Footwear.

Alif industries recently decided to raise Tk 300 crore by issuing a convertible bond to expand its business.

Alif Group started its business in 1967 through oil trading. From there, the scope of business expanded in various sectors including readymade garments, textiles, yarn, financial institutions, the housing sector, electronic media, education and technology.

Alif Industries share price increased slightly to Tk 46.20 crore on Tuesday. Its market capitalisation stood at Tk 204 crore as of Tuesday. Its paid-up capital is Tk 44 crore and has Tk 42 crore in surplus reserve.