ADN Telecom expands: Secures space in Sylhet Hi-Tech Park

ADN Telecom, one of the major sister concerns of ADN Group, has secured land in the Bangabandhu Sheikh Mujib Hi-Tech Park, Sylhet for business expansion.

According to a disclosure on the stock exchange website, the company has acquired approximately 1.75 acres of land for a tenure of 40 years. The move is aimed at facilitating the manufacture of IT-based products adhering to international standards.

On Wednesday (17 April), each share of the company closed at Tk114.70 on the Dhaka Stock Exchange.

According to the disclosure, the project's annual lease rent will be set at $1.50 per square metre for the initial 10 years, subject to adjustment every 3 years with a maximum increment of 10%.

Md Monir Hossain, company secretary of ADN Telecom, confirmed the acquisition of land in the Sylhet Hi-Tech Park, adding that the company will start a feasibility study for the new project. 

"However, the company is yet to decide on what types of products will be manufactured in the new project," he added.

In May last year, the company decided to construct a 13-storey commercial building with a data centre setup in the capital's Badda area. The building, spanning approximately 116,400 square feet, will primarily house the data centre on its first and second floors.

In September last year, it also decided to acquire a 235-decimal plot of land in Gazipur at Tk2.3 crore for business expansion.

ADN Telecom entered the stock market in 2019 by raising Tk57 crore through an initial public offering (IPO) under the book-building method.

In the first half of the current fiscal year, the consolidated revenue of the company stood at Tk64.90 crore, which was Tk66.89 crore in the same period of the previous year.

During the period, its consolidated profit after tax stood at Tk8.35 crore down from Tk12.97 crore compared to a year ago.

Its consolidated earnings per share was Tk1.29 and its net asset value per share stood at Tk30.36 end of December 2023. 

In FY23, the company also paid a 15% cash dividend to their shareholders. During the FY, its total loans stood at Tk40.75 crore. As of December 2023, its retained earnings stood at Tk90.12 crore.

As of 31 March 2024, sponsor-directors hold 43.59%, institutions 16.79%, foreign shareholders 1.99%, and general shareholders 37.63% of the company's shares.