Intech to sell land for debt repayment

Publicly listed information technology (IT) company Intech Limited is set to sell its 1849 decimal land in Mymensingh in a move to pay off its debt and expand business.

In a Dhaka Stock Exchange (DSE) disclosure on Sunday, the company stated that its board of directors made the decision in a meeting held on 21 December.

At present, the land in question is leased out to Biswas Agro Fisheries Limited for fish farming.

Now, the IT company's board has decided that in order to pay off debt, solely leasing out the land will not suffice, thus, the decision of sale. The remaining amount of the sale proceeds will be used for business expansion, the disclosure reads.

Also, the board has instructed the company's chief financial officer to actively seek a prospective buyer who is willing to acquire the land at the highest possible rate.

Meanwhile, Intech Limited has incurred a loss of Tk46 lakh in the July to September quarter of the ongoing 2023-24 fiscal year.

At the end of September this year, the company's quarterly loss per share stood at Tk0.15, which was 9% lower than its loss per share in the same quarter last year.

In the July to September quarter of FY24, Intech's net asset value per share stood at negative Tk0.36 because its accumulated loss exceeded its property value.

Intech Limited was listed on the stock exchanges in 2002. The company turned into a poorly performing one in 2020. Since then, it has not been able to make profits.

In November 2021, the company restructured its board by electing a new chairman and a vice-chairman to revive its business.

People related to Chattogram-based conglomerate S Alam Group and KDS Group joined the Intech board as part of complying with the regulatory provision of jointly holding 30% of the company's shares by the shareholder directors.

Atiqul Alam Chowdhury, chairman of Intech Limited, had stated in the annual report for the fiscal 2022-23, "Mistakes and fraudulent activities of the last management caused the business fall. Hopefully, we will be able to get out of this financial crisis very soon and the company will be profitable in the future."

In its latest annual report, the company stated the previous management said they diversified the business in other areas like resort and fishery projects. But the new management stopped its fishery business on leasehold property.

The current management has informed the Bangladesh Securities and Exchange Commission (BSEC) about their future plans for the company's business.