Staff Reporter :
Esquire Knit Composite Limited (EKCL) will invest Tk 5 crore in its ‘Esquire Limited, a subsidiary of the company due to meet upcoming export opportunities. The board of directors approved it.
The Company has informed that the Board of Directors of the Company in its Meeting held on 20th March 2024 approved the investment decision amounting to BDT 50.00 million (BDT fifty million only) for its subsidiary ‘ Esquire Limited.
This investment is part of a continued investment by the Company in a subsidiary Company that will meet upcoming export opportunities and secure Profit and Dividend for the Company.
“This investment will be financed on the basis of withdrawal of Impress Capital Limited in an associate company of the company, where Impress Capital Limited had Tk 10 Crore,” said in a filing with the Dhaka Stock Exchange on Thursday.
It said this investment is part of a continued investment in a subsidiary company that will meet upcoming export opportunities and secure profit and dividend for the company.
On Thursday, Esquire Knit shares rose 3.24 per cent to Tk 25.50 on the DSE.
Earlier, Esquire Knit Composite Limited invested in L’Esquire Limited by leveraging investments from two of its associates.
On June 22, 2022, information published on the DSE website said that Esquire Knit Composite Limited invested Tk 4.77 crore in its subsidiary company, L’ Esquire Limited.
It was said at that time that this investment would be financed on the basis of the withdrawal of equivalent capital invested in two associate companies of the company, where Esquire Electronics Limited had Tk 3.75 crore and Esquire Accessories Limited had Tk 1.02 crore.
On 2023, 5 January Esquire Knit Composite Limited say decided to issue preference shares in a bid to finance expansion projects and machinery procurement.
The company planned to raise a fund worth Tk 100 crore by issuing 10 crore preference shares at Tk 10 each, according to a DSE filing.
Out of the fund to be raised, the company would spend Tk 65 crore to finance its expansion projects and machinery procurement, while the remnant Tk 35 crore would be utlised to repay bank borrowings.
Preference shares are company shares against which investors avail no voting right and enjoy preference over the general shareholders to avail dividends in a regular situation as well as the leftover during liquidation.
The company’s preference shares would be issued for eight-year tenure and in nature it would be fully redeemable, non-convertible, cumulative preference shares.
Its dividend payment system would be paid semi-annually.
Currently, EKCL has a reserve and surplus of Tk 637.39 crore while its paid-up capital is Tk 134.89 crore. The company has a short-term loan of Tk 394.12 crore and a long-term loan of Tk 199 crore.
Located at Sonargaon in Narayanganj, Esquire Knit has been emerging as a conglomerate with knitting, fabric dyeing and finishing facilities under one roof since its commercial launch in 2001.
Esquire Knit Composite Ltd, which produces different types of knit garments and sells them to foreign buyers, raised Tk150 crore from the capital market in 2019.
From July to December 2023, its net loss was Tk14.83 crore, which was loss Tk6.87 core one year ago.
During the period, its earnings per share were negative Tk1.10 and its net asset value per share was Tk64.20 with revaluation.
Sponsors and directors jointly hold 46.95 per cent of the company’s shares, while institutions and general investors own 40.92 per cent and 12.13 per cent, respectively.
