SK Trims and Industries Ltd Wednesday announced that it would expand its production capacity to strengthen its foothold in the market it operates.
The company manufactures swing threads, elastics, polies, cartons, photo cards, bar codes and tissue papers for the export-oriented garments industry.
SK Trims that was listed in the bourses in 2018 under the miscellaneous category, had planned the capacity expansion during its Initial Public Offerings (IPO).
After expansion, the sales revenue of the company will be above Tk195 crore and profit after tax is expected to be around Tk35 crore, according to the DSE website.
The company officials said the construction of a 5.5-storey building has been completed using the IPO fund.
Installation of machinery at the factory will increase the production capacity of garment accessories by 30 percent, they added.
The company received Tk30 crore as IPO proceeds.
The IPO prospectus showed, from the amount, Tk12.7 crore will be used for machineries, Tk14.9 crore for building construction and Tk2.4 crore as IPO expenses.
At the Dhaka Stock Exchange, the stock price of SK Trims closed at Tk62.1 per share on Wednesday. The price was 2 percent up from Tk60.7 per share in the preceding session.
According to the annual report of SK Trims, the company recorded earnings per share of Tk2.53 for the year ended on June 30, 2019. The EPS was Tk1.92 for the same period in the previous year.
The stock price witnessed a surge in the last one month, illustrating a keen interest on this stock among the investors.
The company went into operation on June 1, 2014 as SK Thread and Industries Ltd. Later, it was renamed as SK Trims and Industries Ltd on April 25, 2016.