Queen South Textile Mills Limited, listed on both stock exchanges, is seeking another six months for implementing its initial public offering (IPO) project.
The company raised Tk15 crore from the stock market for the construction of an automatic warehouse system and modernising its factory in 2017. But it could not complete the projects on schedule.
It has already applied to the Bangladesh Securities and Exchange Commission (BSEC) to increase the project's tenure by another six months.
The company's IPO utilisation period expired on December 7, 2019.
Until November 30, 2019, the company was able to utilise Tk6.94 crore, which was only 46 percent of the IPO fund.
It allocated Tk7.46 crore for the construction of an automatic warehouse system but the money has not been utilised yet.
Besides, the company allocated Tk5.60 crore for the acquisition and installation of machinery to modernise its factory. 89 percent of the allocation has been utilised within the schedule.
Masum Rana, company secretary of Queen South Textile Mills Limited, told The Business Standard, "We have completed the civil work for constructing the automatic warehouse system. But we need another six months to complete the whole work."
"Meanwhile, the LC (Letter of Credit) has been issued for importing the required equipment," he said.
"General shareholders have approved the six-month extension application at the Annual General Meeting," he added.
The BSEC approved the IPO of Queen South Textile Mills on November 14, 2017.
The company's board of directors recommended an eight percent cash dividend for the shareholders in the last fiscal year.
In 2018-19, the company's net profit was Tk19.89 crore, which was Tk17.72 crore in the previous year.
In the last fiscal year, the company's gross profit was Tk48.32 crore, which was Tk41.07 crore a year before.
At the same time, its earnings per share was Tk1.81, and the net asset value per share was Tk17.62.
In 2018-19, the company's net sale was Tk371.55 crore, which was Tk346.08 crore in the previous year.
Currently, the company has a reserve and surplus of Tk72.95 crore and its paid-up capital is Tk121.18 crore.
It has 12.12 crore shares, with a face value of Tk10 each.
The company has a short-term loan of Tk72.49 crore and a long-term loan of Tk44.96 crore.
Share price on decline
The company's share price reached Tk66.10 on July 12, 2018, but has been going down since then.
On January 13, 2020, its share price on the Dhaka Stock Exchange closed at Tk22, which is around 66 percent less than the July 12, 2018 price.
The sponsors and directors own 53.23 percent of the total shares of the company. Besides, institutional investors own 14.52 percent, foreign investors 16.81 percent, and general investors 15.44 percent.
Journey of Queen South Textile
Queen South Textile Mills Limited is a 100 percent export-oriented yarn dyeing company located in Dhaka Export Processing Zone in Savar.
The company dyes different counts of cotton, polyester, viscose, acrylic, nylon and blended yarn.
It was incorporated in 2003 and started operation in the middle of 2005.
It was listed on both stock exchanges on January 7, 2018.