The board of directors of Runner Automobiles Ltd has approved the proposal of setting up a three-wheeler progressive manufacturing plant at the current factory location Bhaluka upazila in Mymensingh.
However, setting up the plant is subject to the final agreement with the international partner, said an official disclosure on Tuesday.
The board also decided to revise the use of IPO proceeds subject to approval of shareholders in the extraordinary general meeting and Bangladesh Securities and Exchange Commission (BSEC).
The EGM will be held on December 17 at 10:00am in Trust Milonayaton in Dhaka.
The record date for EGM is November 19.
The company also informed that the details of the revised use of proceeds and the economic benefits aligned with the new mode of proceeds utilization are as follows: Chassis welding line Tk 121.80 million, body welding Tk 71 million, paint booth Tk 277.20 million and vehicle assembly and testing Tk 160 million.
The company has decided to set up progressive plant of CNG/LNG based 3-wheelers with the existing 2-wheelers manufacturing facilities to grab the huge potential market all over Bangladesh.
Through implementing the project, the company will be able to improve the excellence for producing and distributing rapidly expanding 2-wheelers at its own plant which will reduce cost of materials and flourish the existing market portfolio.
With the new manufacturing units, the company will produce around 30,000 units per year. The initial capacity of the progressive manufacturing plant will be 3000 units per month.
This project will be captivating for the company with the existing business portfolio.
The board of directors of the company has recommended 10 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2019.
The AGM will be held on November 25.
The company has also reported consolidated EPS of Tk 5.07, consolidated NAV per share of Tk 65.49 and consolidated NOCFPS of Tk 0.67 for the year ended on June 30, 2019 as against Tk 4.90, Tk. 59.53 and Tk 2.64 respectively for the same period of the previous year.
Each share of the company, which was listed on the Dhaka bourse in 2019, closed at Tk 60.10 each on Monday at Dhaka Stock Exchange (DSE).
The company’s paid-up capital is Tk 1.08 billion and authorised capital is Tk 2.05 billion while total number of securities is 108.13 million.
The sponsor-directors own 50.04 cent stake in the company, the institutional investors own 25.70 per cent, and the general public 24.27 per cent as on September 30, 2019, the DSE data shows.
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