The board of directors of Bangladesh Steel Re-Rolling Mills Ltd (BSRM) has decided to make equity investment of Tk 390 million (approximately) in a new joint venture company.
The name of the new joint venture company is BMS Steel Ltd, formed in Kenya along with investment partners from Mauritius and United Arab Emirates, said a disclosure posted on the Dhaka Stock Exchange website on Thursday.
The equity investment of the BSRM is equivalent to US$ 4.67 million, representing 18 per cent in BMS Steel.
The investment partners have operations in Kenya and other countries in Africa.
BMS Steel will set up a manufacturing facility with total investment of about US$ 65 million to produce 0.40 million metric tons MS Bars and sections per year.
Bangladesh Steel Re-Rolling Mills was listed on the Dhaka bourse in 2015.
The country’s leading steel producers’ share closed at Tk 76.30 on Wednesday at the DSE.
The company disbursed 10 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2018. In 2017, the company also paid 10 per cent cash and 10 per cent stock dividend.
The company’s unaudited consolidated earnings per share (EPS) stood at Tk 1.73 for July-September 2018 as against Tk 0.77 for July-September 2017.
Consolidated net operating cash flow per share (NOCFPS) was Tk 20.30 in the negative for July-September 2018 as against Tk 39.24 in the negative for July-September 2017.
Consolidated net asset value (NAV) per share was Tk 65.45 as on September 30, 2018 and Tk 63.70 as on June 30, 2018.
The company’s paid-up capital is Tk 2.36 billion and authorised capital is Tk 5.0 billion, while the total number of securities is 236.06 million.
The sponsor-directors own 40.94 per cent stake in the company, while institutional investors own 18.02 per cent, foreigners 19.37 per cent and the general public held 21.67 per cent shares as on November 30, 2018.
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