Friday, May 03, 2024
The Bangladesh Securities and Exchange Commission (BSEC) has approved Aamra Networks Ltd’s application to raise Tk 92.98 crore through rights issue. It also approved Craftsman Footwear and Accessories Ltd’s proposal of qualified investor offer (QIO) to raise Tk 5 crore.
These approvals to the draft rules came at a meeting held at the Agargaon office on Wednesday with BSEC Chairman Shibli Rubayat Ul Islam in the chair.
Aamra Networks will raise Tk 92.98 crore by issuing 30,993,304 right shares. Shareholders will get one share for every two shares at the per-share price of Tk 30 with a Tk 20 premium. Thus, the ratio will be 1R:2, the BSEC said in a press statement Wednesday.
As per the proposal, the company will utilise the funds for network system upgrades and network coverage expansion. The company reported a net asset value (NAV) per share of Tk 38.11 and earnings per share (EPS) of Tk 3.64 for the year ending on June 30, 2023.
UCB Investment Ltd is the joint issue manager in this regard. Currently, the company has a paid-up capital of Tk 61.98 crore, and an authorised capital of Tk 100 crore.
Aamra Networks had issued a non-convertible, redeemable, unsecured, zero-coupon bond of Tk 100 crore in 2020, subject to the approval of the regulatory body BSEC for the same purpose.
The bond purposes are networking system upgrade and expansion, repayment of loans, and working capital arrangements.
At the commission meeting, Craftsman Footwear and Accessories Ltd received approval to issue 50 lakh ordinary shares at a price of Tk 10 per share to eligible investors, as per a BSEC circular.
The small-cap company will raise this capital to create long-term financing opportunities in the SME Sector.
According to its financial statement for the period from July 2022 to June 2023, the company’s earnings per share (EPS) stood at Tk 2.35, and the net asset value per share (NAV per share) was Tk 16.72.
Craftsman Footwear wants to increase its export volume significantly in next three years. It intends to construct new production buildings and separate warehouses.
The export-oriented shoemaker planned to enter the stock market by raising funds from the public for its business expansion and repayment of bank loans.
Speaking to The Business Post, Craftsman Footwear Managing Director Sadat Hossain Salim said, “The bank loan interest has already increased, and could reach 15 per cent in the near future, which will impact sustainable business growth.
“That is why we want to raise funds from the stock market for business expansion.”
The company’s overall sales more than doubled year-on-year to Tk 73.3 crore in FY23, backed by higher exports. Its exports soared 237 per cent to Tk 71.1 crore while domestic sales dropped by 19 per cent to Tk 2.31 crore, indicating that the company focuses more on exports.
Craftsman Footwear exported around 340,000 pairs of shoes until June 2023.
The company exports products mainly to Italy, Japan, the USA, Germany, Canada, Hungary, Austria, Poland, and Spain, while major buyers are Hush Puppies, Bata, Tata Italia, Parrotto, Unit, Fine Boys, and On Spirit Primadonna.
The company has two production units – Unit 1 produces for local sales, while Unit 2 manufactures for exports, which started operation in April 2021.
To achieve the target, it plans to introduce a double shift at its factory in Gazipur by next year. Currently, it operates three production lines – cutting, sewing, and lasting – manufacturing around 2,000 pairs of shoes daily.
Incorporated in 2017, Craftsman started commercial production in 2020 as a shoe manufacturer for the export market, with 35 employees at a small factory unit at Joina Bazar in Sreepur upazila of Gazipur district.
Craftsman Footwear started its journey as a diversified business unit in leather segments and began manufacturing different types of “leather goods, crafts, and footwear.”
Now, the company has a state-of-the-art manufacturing facility with a 100,000 square-foot factory area with more than 750 employees.
Its managing director mentioned that skilled designers at the Craftsman factory produce a diverse range of shoes that adhere to global standards. The production unit has cutting-edge machinery from Italy and Germany.
Green Delta Capital is acting as the issue manager for the company.
