Nialco Alloys to revise fund utilisation plan
Nialco Alloys, a listed manufacturer of copper alloy products on the SME board, is going to revise its utilisation plan of the fund it collected from the stock market through a qualified investor offer (QIO).
In February 2022, the company raised Tk7.5 crore, of which, it has used Tk4.62 crore.
Now, the company is planning to use the remaining Tk2.88 crore for building sheds for its raw materials, instead of acquiring a covered van as it had planned to do at the time of its SME board listing.
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It has also decided to extend its fund utilisation time till December 2023, whereas after raising the QIO fund, the company was supposed to use it within 15 months.
The company is going to hold an online extraordinary general meeting (EGM) on 6 May in order to get shareholders' approval of the revised fund utilisation plan and time extension. The record date has been fixed on 13 April.
Nialco Alloys officials said when the company applied for the QIO, it was in need to buy covered vans and trucks. But now, the company deems that it will be useful to build sheds for its raw materials.
According to the company's initial plan, Tk2.56 crore of the QIO fund was allotted for land and land development, and Tk4.86 crore for plant and machinery.
But 56.09% of allotted funds for land development and 28.81% of allotted funds for plant and machinery remained unutilised.
In the July to December period of 2022, Nialco Alloys' profit jumped 1,182% year-on-year to Tk4.02 crore.
The company exports 100% of its products to Europe, Africa, and Asia.
