Saiham Cotton receives Tk15cr insurance recovery
The money will be used for the raw material purchase
Saiham Cotton Mills Limited has received Tk15 crore insurance recovery as the second instalment from the Green Delta Insurance Company Limited.
Earlier on 19 July this year, the company received its first Tk15 crore recovery instalment from the insurer.
A fire broke out at the Habiganj factory of Saiham Cotton on 15 October 2020, ravaging the raw cotton stock for yarn manufacturing. The fire also damaged the infrastructure as the company estimated the total losses at more than Tk59 crore.
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The factory had its insurance with Green Delta as the insurer will pay Saiham a total of Tk42.03 crore – 70% of the total losses.
A Saiham official said the first recovery instalment was utilised for loan repayment, reconstruction of raw cotton warehouse and other company expenditures.
Md Sahinur Kabir, company secretary of Saiham Cotton Mills Limited, said they have already reconstructed the warehouse as the second instalment will be used for raw materials.
Saiham Cotton Mills Ltd was incorporated on 30 May 2002. It was listed on the stock exchanges in 2012.
The company operates as an industrial spinning plant having one of the largest and modern cotton mills for 100% export-oriented industries in Bangladesh. It manufactures auto coned electronically cleared cotton carded and combed grey yarn.
From July 2020 to March this year, the company's revenue amounted to Tk259.30 crore as the profit stood at Tk10.73 crore, and earnings per share was Tk0.72.
Of the company's total shares, sponsors and directors jointly hold 42.40%, institutional investors 15.22%, and general investors 42.38%.
The last trading price of the company's shares at the Dhaka Stock Exchange was Tk20.30 each Thursday.
