SS Steel to invest Tk 184cr in Al-Falah Steel

SS Steel limited has decided to pump Tk 184 crore into Al-Falah Steel and Re-Rolling Mills.

It would invest Tk 87.46 crore to subscribe to around 99 per cent stake of its existing equity shares and a further Tk 96.68 crore investment for the smooth operation of the company, it said in a filing with the Dhaka Stock Exchange on Wednesday.

“The investment is expected to increase the turnover of SS Steel by approximately Tk 450 crore per annum towards the year which can potentially increase the profitability of the company substantially,” it said.

The investment will be made as a share money deposit for smooth operation, against which Al-Falah Steel & Re-Rolling Mills Limited will issue new shares to SS Steel Limited.

Al-Falah Steel & Re-Rolling Mills Limited is a steel industry engaged in the production and selling steel by its renowned brand name and capacity of the Al-Falah Steel & Re-Rolling Mills Limited, a non-listed company located in Narayangonj. Its present production capacity is around 64,800 metric tonnes per annum.

SS Steel will finance the investment from the company’s retained earnings and partly from the bank and financial institutions. Its share price fell 1.12 per cent to Tk 17.60 on the DSE.

In 2020, SS Steel acquired 99 per cent Saleh Steel Industries Limited to capture the market in the uncovered geographical areas of Bangladesh.

SS Steel Limited started its operation in 2001 that was dedicated solely to producing reinforcement – bars from small rolling mills.

At that time rolling mills were fed with sheared and cut plates derived out of abandoned ships. Re-bars (Rod) were produced to meet the needs for affordable steel and iron for the growing territories and basic infrastructure in the newly formed Bangladesh. Since the inception of the company, SS Steel Limited continued to increase its capability in every aspect of the production spectrum.