Rice bran oil producer Emerald Oil Industries Limited has decided to resume its production after five years.
The publicly traded company disclosed the information on the Dhaka Stock Exchange’s (DSE) website on Monday.
It also announced that the company appointed new managing director Md Afzal Hossain, who a Director of Minori Bangladesh Ltd.
According to the disclosure, the board has decided to go into full-fledged commercial production from September 1, 2021 with an input capacity of 330 MT rice bran per day, and daily output capacity of 48 MT rice bran oil and 282 MT DORB.
Sources said that Minori Bangladesh Limited, an arm of Japanese farming group Minori Co Limited, has recently nominated Sidratul Mahabub Hasan as representative of the company to the Emerald Oil board after purchasing around 8 per cent shares of the company.
Earlier on March 2, 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 interests of investors.
As per BSEC directive, two directors had to be nominated from the shareholders having at least 2 per cent shares of the paid-up capital of the company.
In 2016, owners of the company involved in the Basic Bank scam and its managing director Syed Hasibul Gani Galib had been jailed. Galib fled the country after getting bail.
Emerald Oil was listed in the stock market in 2014. The company raised Tk20 crore through initial public offering. In June 2016 Emerald Oil stopped production at its factory.
Emerald Oil’s stocks were being traded under the ‘Z’ category since 2018 due to losses incurred and announcements of no dividend.
On Monday, share price of the company increased by Tk 2.20 was last traded at Tk 34.40. Though production had been suspended, share price of the company went from Tk 11 to Tk 35.40 in six months period.
Market capitalisation of the company currently stands at Tk 192.27 crore while the paid-up capital stands at Tk59.71 crore. Authorised capital of Emarald Oil is Tk 100 crore. The number of outstanding securities of the company is 5.97 crore.
Emerald Oil had announced 10 per cent stock dividend for the year ended on June 30, 2016.
