Alif Industries Wants To Raise Tk 200 Cr Through New Shares

Company Performance

Alif Industries Wants To Raise Tk 200 Cr Through New Shares

Alif Industries Limited, a concern of Alif Group, wants to raise a capital of Tk 200 crore by issuing new shares to the existing shareholders and investors at a price that will be determined by the latest annual audited net asset value and share price valuation. The company disclosed this information on the Dhaka Stock Exchange (DSE) website. The decision will be implemented after getting approval from the shareholders at the annual general meeting (AGM) and then from the Bangladesh Securities and Exchange Commission. However, the company did not disclose the usage of the fund. Alif Industries, previously known as Sajib Knitwear and Garments Ltd, was listed on stock exchanges in December 1995. In 2007, the company was delisted from the main board of the bourses. In 2010, Alif Group bought Sajib Knitwear and named it Alif Industries in March 2015. In December 2017, the company returned to the main board of stock exchanges. Earlier, on 9 November, the company decided to raise Tk 300 crore from the capital market by issuing a convertible bond to expand its business. The company will use the fund to purchase land and machinery and retrofit its existing factory. The bond will mature in six years. The interest amount of the bond will be fully secured by a bank guarantee. The entire principal amount can be converted to Alif Industries shares at a 10% discount of the previous 20 days' weighted average of the market price. The bond will be convertible 25% per annum from the third year and will be fully converted into shares of Alif Industries by the end of the tenure. Besides, Alif Industries recommended a 10% cash dividend for its shareholders for the year that ended on 30 June 2021. The company also recommended a 5% cash dividend for the previous fiscal year. Recently, Alif Group has signed an agreement with publicly listed C&A Textiles to take it over as it has not been in production for a long time. Alif Group's Managing Director Azimul Islam said earlier, "Previously we bought CMC Kamal Textile and Sajib Knitwear and Garments Ltd which are currently doing rather well under Alif Group. Likewise, we want to take C&A Textiles forward."