Miracle Industries Limited, a publicly traded plastic packaging manufacturer, has made a big change on its board, and has announced to return to production next month after a hibernation of one year.
The company informed that, as decided with the transfer of 30,22,900 free shares held by its four previous directors to Mehmood Equities Limited (MEL), the necessary investment would therefore be made by the new shareholder.
The Miracle Industries board also decided to recommence its production by September 30 next, as the company has been out of production since July 1 last year, as per a Dhaka Stock Exchange (DSE) filing.
The company also reconstructed its board, with its Managing Director Rafiqul Murshed, Chief Executive Officer Latifa Binte Lutfar, and Directors Wahiduzzaman Chowdhury, and Asadur Rahman Mirza resiging from their respective positions.
In their vacant positions, Mehmood Equities Limited nominated Dr AKM Sahabub Alam as managing director; Showkat Mehmood as director; and Nayan Mehmood as director, the company said through the DSE disclosure.
The board also appointed Omar Faruk as the company secretary in place of Dewan Jahidul Islam.
Meanwhile, shares of Miracle Industries rose by 9.87 per cent to Tk 33.40 on the Dhaka bourse on Monday as its production is expected to restore next month.
Miracle Industries had shut its production on due to the working capital shortage last year.
Founded in 1995 as the Bangladesh Chemical Industries Corporation (BCIC)-Miracle Industries joint venture, the company used to produce and export a complete range of polypropylene woven sacks and value-added FIBCs (Flexible Intermediate Bulk Containers).
The company got listed on the Dhaka and Chittagong Stock Exchanges in 2000. Its manufacturing units are located at Sreepur in Gazipur district.
The company’s business lines include the manufacturing of different types of PP woven bags, liner bags with lamination, and FIBC/Jumbo bags for bagging cement, fertilizer, salt, feeds, sugar, food grains, and chemicals.
According to its latest annual report for 2017-18, Miracle Industries’ permanent workers were 454.
In the fiscal year 2017–2018, the listed firm had produced I7.3l lakh pieces of various types of bags of unit-l and 1.55 crore pieces of WPP bags of unit-2.
According to the Dhaka Stock Exchange data, the company has a paid-up capital of Tk35 crore, and belongs to the bourse’s category ‘B’.
Sponsor-directors held 30 per cent of the company’s total shares, while general investors owned 70 per cent as on May 31 this year.
The plastic packaging manufacturer paid only a 1 per cent cash dividend to its shareholders for the fiscal year 2019–20. In the last three fiscal years, the company had not published any financial statements.
In FY20, it incurred a loss of Tk13 crore and posted a loss per share of Tk3.62.
According to its original shareholder agreement, Miracle has two groups of shareholders, with BCIC in Group A holding a 20 per cent stake in the company and the four shareholders in Group B holding a 10 per cent stake. However, Group B controls the company's management.
