RN Spinning to hold EGM on merger

RN Spinning Mills – a listed firm belonging to FAR Group – will hold an extra general meeting (EGM) on amalgamation with its sister concern.

According to a stock exchange filing on Wednesday, the company will organise the meeting on 21 April at Jam Jam Hotel and Resort Hall in Shankarpur, Cumilla.

It has set 30 March for identifying the shareholders of the company for the EGM.

Early in January, the company had disclosed that its board had decided to merge with Samin Food and Beverage Industries and Textile Mills, another non-listed firm of the group.

Samin Food and Beverage Industries and Textile Mills went into operation in fiscal 2018-2019.

Its textile unit has a capacity of producing 79,848 spindles of cotton, viscose, and CVC yarn annually, and the food and beverage business is yet to start, as per the company information.

RN Spinning, a Cumilla-based spinner, could not get back to production after a massive fire incident in 2019.

The fire devastated RN Spinning was producing synthetic, and acrylic yarn.

It raised Tk30 crore through an initial public offering (IPO) in 2010.

Two years later, it raised an additional Tk278 crore by issuing the right shares to enhance its production capacity through the installation of new machinery.

The company was in profit in the 2016-2017 and 2017-2018 fiscal years. But in the following fiscal year, it incurred a loss of Tk607.11 crore due to the fire incident.

The firm continued to incur losses in the following years. In the last fiscal, its cumulative loss stood at Tk446.68 crore.