The Monno Welfare Foundation — a corporate director of the publicly listed Monno Fabrics Limited — has sold 5% or 57.60 lakh shares of its holdings to pay off bank loans of Monno Fabrics..
The sale proceeds, valued at Tk15.46 crore, were provided by the foundation to Monno Fabrics as an interest-free loan, the company said, in a filing on the stock exchanges on Thursday.
The Bangladesh Securities and Exchange Commission (BSEC) gave its approval on the matter on 28 April this year.
In its stock exchange filing, Monno Fabrics said the money has been utilised for the adjustment of the bank loan liabilities of Mono Fabrics with four banks— Sonali Bank, Janata Bank, BDBL Bank and Mercantile Bank— and other expenses.
According to sources, out of the total money from the foundation, Monno Fabrics will repay Tk12.73 crore loans to Sonali Bank, and Tk60 lakh to BDBL, Janata Bank, and Mercantile Bank. Also, Tk1.41 crore will be used for electric bill payments for March 2022, and the rest will be used for the payment of advance income tax for the sale of shares.
Monno Fabrics Ltd started out in the 1990s and it is a complete composite textile mill.
More than a decade ago, the BSEC transferred the company to the over-the-counter (OTC) board of stock exchanges from the main trading boards of the bourses. Later, as part of an initiative to reform the OTC, the regulator allowed the company to return to the main market following their improvement in business.
After relisting on the stock exchanges, its share trading debuted on 13 June 2021.