After fish business, IT company Intech wants to send people abroad

Internet service provider Intech Limited is not doing well in its business. So now, it wants to send skilled people abroad.

The company, listed on both stock exchanges, first wants to send people to Japan. To this end, it has recently signed a memorandum of understanding (MoU) with Japan's Miyabi Engineering Ltd, a civil engineering projects construction company. 

Intech's Company Secretary Md Mohibul Islam told The Business Standard that the process of sending workers to Japan is at an early stage. 

"Just an MoU has been signed. Discussions are underway," he said.
An official of Intech said the company would only send skilled people to Japan. ''Our Paltan office is ready to train people in information technology.''

If this project becomes successful, the company will send skilled people to Europe as well. 

Meanwhile, Intech's share price at the Dhaka Stock Exchange (DSE) increased by 81 percent in the last 30 days, and it was Tk21.7 per share on Thursday. However, it fell to Tk20.1 per share on Sunday. 

The DSE did not give any notice to the company despite an unusual hike in its share price.

Asked why the company's share price went high, Mohibul said, ''We do not know as we do not have any price-sensitive information."

In 2018, Intech announced that it would invest around Tk100 crore in business diversification. It included launching a new service with a US software company and a joint venture project of 100MW solar power plant with a Sri Lankan company.

As the news spread, Intech's share price rose by 305 percent to Tk69.4 per share during July-September of 2018.

A senior official of the company said the Bangladesh Securities and Exchange Commission rejected Intech's application for selling placement shares to raise capital for new investment, as the company's directors did not have a combined 30 percent share. 

In the first half of the current financial year, 57 percent of the company's revenue came from selling fish, 31 percent from the IT business.

At this time, Intech's revenue fell by 39 percent to reach Tk5.25 crore, compared to the same period last year. In addition, its net profit dropped by 90 percent to just Tk37 lakh.

The paid-up capital of the company is Tk31.32 crore. The sponsors and directors of the company jointly hold only 3.97 percent of its total shares. Of the remaining shares, institutional investors own 10.72 percent, and the general investors 85.31 percent.