Alltex temporarily shuts down factory

Alltex Industries Ltd, which is engaged in manufacturing and exporting home textiles, has decided to shut down its factory for 45 days from 2 November.

Its factory is located in Rupgonj, Narayangonj.

The company disclosed the information on Dhaka Stock Exchange (DSE) website on Tuesday.

The company said in its price sensitive disclosure that the factory was temporarily shut down as the gas supply there stopped when the government started working to set up underground gas lines. 

During the reconstruction of the gas lines, all production activities at Alltex factory will remain suspended.

After the news was revealed, its share price fell by 2.47% to Tk7.90. The closing price of the company's shares was Tk7.70 each on Tuesday.

Alltex Industries is a sister concern of Alltex Group. The company was listed on the DSE in 1996. Its paid-up capital is Tk55.96 crore.

Currently, the company's shares are being traded under the "Z" category as it has failed to declare a dividend for the last five years.

The last time the company paid 4% cash and 6% stock dividends for the shareholders was in fiscal year 2014-2015.

Alltex Industries' net loss was Tk23.77 crore and its loss per share was Tk4.25 in the first three quarters of 2019-20 financial year.

The sponsors and directors own a 40.74% stake in the company, while the institutional investors own 6.78% and the general investors 52.48% as of 30 September, 2020, the DSE's data shows.

The finance minister had announced in the parliament that the Alltex Group was one of the top loan defaulters.

Among the Alltex Group concerns, the listed company has Tk270 crore loaned from several banks.