Home ›› 03 Apr 2023 ›› Stock
Envoy Textiles Limited, a cent per cent export-oriented denim manufacturer, announced that its new spinning unit went into commercial production.
The unit with an annual production capacity of 4,200 metric tonnes of yarn went into production on Saturday, according to a disclosure posted on the Dhaka Stock Exchange (DSE) on Sunday.
Although in July 2021, the listed textile firm said the unit was scheduled to be completed by July 2022 it came into operation a bit late due to the delay in shipments of machinery by the suppliers caused by the Russia-Ukraine war, said the company.
The project is configured with European and Japanese machineries to have a state-of-the-art ring spinning production facility.
The textile firm said it planned to establish a spinning unit at its existing factory premises in Jamirdia of Bhaluka under Mymensingh district with a production capacity of 3,710 metric tonnes of cotton, polyester, and spandex core-spun yarn per year.
The cost of the expansion project was Tk 176.19 crore, according to another filing in July 2021.
Around 60 per cent to 70 per cent of the yarn manufactured is expected to be consumed in-house for denim production, while the remainder is deemed for export.
Earlier, in May last year, Envoy Textiles informed about the purchase and installation of spinning machinery and associated equipment for the second spinning unit (blended yarn project) of the company.
For the purchase, the company’s board consented to accept an offer of a long-term loan of $ 11 million from the Asian Development Bank (ADB).
“The loan tenure is up to 7 years, including a grace period of 1.5 years. The loan will be repaid in equal semi-annual installments starting from the 1.5 years anniversary of the closing date of the facility.”
“ADB will disburse the loan subject to fulfillment of the conditions of the due diligence agreement and the approval of Bangladesh Investment and development authority (BIDA),” the company said.
Envoy Textiles, which was listed on the DSE in 2012, had shares priced at Tk 43.90 per share on Sunday at the Dhaka Stock Exchange. The price moved between Tk 39.90 and Tk 51.90 in 52 weeks.
The publicly traded company disbursed a 5 per cent cash dividend for the year ended on June 30, 2021.
Its earnings per share (EPS) stood at Tk 0.75 for the Q3 of FY22, up from Tk 0.21 against the same period a year earlier. As on March 31, 2022, the company’s net asset value (NAV) per share stood at Tk 39.40 against Tk 37.79 as on June 30, 2021. The company’s paid-up capital is Tk 167 crore, authorised capital is Tk 400 crore.
Envoy Textiles Ltd is the world’s first LEED-certified platinum factory.
Incorporated as a private limited company in 1995, before being converted into a public limited company in 2009, Envoy Textiles Limited is the first denim project in Bangladesh with rope-dyed technology and one of the country’s leading companies in this sector, according to the company website.
Went into commercial operations in 2008 it got an associate company – Edge Denims Limited – amalgamated with it later in 2009, designed for setting off a new era of excellence in management, cost control, and avoidance of complications in business dealings and operations.
In June 2012, the company obtained consent, from the Bangladesh Securities and Exchange Commission, for raising funds through an initial public offering (IPO).
The sponsor-directors owned a 57.93 per cent stake in the company, while the institutional investors held 34.51 per cent, foreign investors 0.07 per cent and the general public 7.19 per cent as on February 28, 2023.
