Intraco Refueling Station Ltd (IRSL) led the gainers' chart of Dhaka Stock Exchange (DSE) in the outgoing week, as the company announced that it will merge its five subsidiaries with the parent company to reduce 'management cost' and avail 'tax benefit'.
In a filing with the DSE on Monday, the company said its Board of Directors has decided to hold an extraordinary general meeting to seek shareholders' approval to the merger issue.
The subsidiary companies are Absar & Elias Enterprises, East End Automobiles, M Hye & Co. CNG Refueling Station, Good CNG Refueling Station and Nessa & Sons. Intraco Refuelling Station holds more than 95 per cent stakes in its five subsidiaries.
Following the news, the investors rushed to buy its shares almost throughout the week amid positive expectations.
As a result, the company's share price jumped 25.20 per cent in the outgoing week to close at Tk 31.30 on Thursday, becoming the week's top gainer. The closing price also hit the highest level in more than two years.
The company will hold an EGM on August 23 at 11:30am through a digital platform to seek shareholders' approval. The record date for the EGM is set on July 27.
The boards of directors of the Intraco Refueling Station and its subsidiary companies have also decided at a meeting that the parent company, Intraco Refueling Station, will take over all assets and liabilities of the five subsidiaries through merger, as per the disclosure earlier.
After the merger, the Intraco Refueling Station can avail tax benefit. Besides, the merger will help avoid double taxation in case of dividend declared by the subsidiary companies, according to an earlier disclosure.
Intraco Refuelling Station, currently an 'A' category company, was listed on the stock exchanges in 2018.
The company's three-month consolidated earnings per share (EPS) was Tk 0.36 for January-March 2022 as against Tk 0.30 for January-March 2021.
Its nine months' consolidated EPS also rose to Tk 0.73 for July 2021-March 2022 as against Tk 0.59 for July 2020-March 2021.
The company disbursed 2.0 per cent cash and 8.0 per cent stock dividend for the year ended on June 30, 2021. In 2020, it provided 5.0 per cent cash and 5.0 per cent stock dividend.
The company's authorised capital is Tk 1.50 billion and paid-up capital is Tk 982.33 million while total number of securities is 98.23 million.
Sponsor-directors own 30.66 per cent stake in the company while institutional investors 15.01 per cent and the general public 54.33 per cent as on May 31, 2022, the DSE data showed.
Incorporated in 2007, the company's principal services are selling gas through CNG refueling stations.
Eastern Cables is the second highest gainer in the outgoing week, soaring 24.58 per cent, following the news that the state-run entity signed an agreement with China National Technical Imp & Exp Corp (CNTIC) on Monday to export aluminium electrical wires worth $4.20 million to China.
The week's other top gainers are Zaheen Spinning (23.42 per cent), Robi Axiata (18.60 per cent), Delta Life Insurance (18.21 per cent), Prime Textile (17.70 per cent), Khulna Power Company (15.07 per cent), IPDC Finance (14.80 per cent), Sonali Paper & Board Mills (14.79 per cent) and Zahintex Industries (13.75 per cent).
