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Spondon rice bran oil to hit market today after 4yrs

Shakhawat Hossain Sumon
28 Jun 2022 00:00:00 | Update: 28 Jun 2022 00:55:46
Spondon rice bran oil to hit market today after 4yrs

Emerald Oil Industries Ltd, a company listed in the stock market, has resumed production and distribution after four years with investment from Minori Bangladesh – a Japanese firm.

Emerald had announced in January this year that it would go into full production after conducting an experimental run. As part of this process, the company will inaugurate the marketing of Spondon brand rice bran oil at a ceremony on Tuesday.

Speaking to The Business Post, Managing Director at the Emerald Oil Industries Ltd and Director of the Minori Bangladesh Afzal Hossain said, “Production is now going on full swing in our factory.

“With the current rate of production, we will be able to supply 20,000 – 25,000 kgs of rice bran oil per day to the market.”

He continued, “Regardless of this company’s profits or losses recorded in the past, the main purpose of our investment is to turn it into a profitable company, and pay dividends to investors at the end of the year.

“New products will be marketed under the same name Spondon, instead of under a new brand name.”

The Emerald Oil Industries Ltd, incorporated in 2008, began production of its Spondon-branded rice bran oil in 2011.

The company halted its production in 2017 due to a shortage of working capital, after its founders’ got involved in a loan scam, got arrested, and finally escaped the country. It has not given any dividend since then.

In March, 2021, the stock market regulator BSEC restructured the board of directors of Emerald Oil by appointing five independent directors to the company’s board in a bid to bring the non-functioning company back to business and protect the interest of investors.

The company later announced that Minori Bangladesh purchased an 8 per cent stake in Emerald Oil for Tk 50 crore. In July the same year, the company said it would go into full commercial production from September 1, 2021.

Emerald however failed to start production as per their schedule due to strict lockdown measures, as it could not renew or obtain most of the required licenses as all offices were closed from July 23, 2021 to August 10, 2021.

Listed in 2014, the company raised Tk 20 crore through IPO from the capital market. Its stocks were being traded under the “Z” category since 2018 due to losses incurred and the announcement of no dividends.

In FY 16, Emerald Oil generated a profit of Tk 18.02 crore and paid a 10 per cent stock dividend to its shareholders. According to the Dhaka Stock Exchange (DSE) data, the share price of the company was Tk 44.60 each on Monday.

Until May 2022, out of the total shares, the sponsors and directors hold 38.26 per cent, institutional investors 7.83 per cent, and general shareholders hold 53.91 per cent.