New investment decision pushes up 2 Maksons Group companies’ share prices
In the last four working days, share prices of Maksons Spinning Mills and Metro Spinning rose by 31% and 16%, respectively
The share prices of two Maksons Group companies have gained momentum because of the decision to take plots in the Bangabandhu industrial city on lease to build factories and make new investments despite the ongoing Covid-19 pandemic.
In the last four working days, share prices of Maksons Spinning Mills and Metro Spinning increased by 31% and about 16%, respectively.
The share prices of the two companies did not rise much in the last six months but have been increasing since the new investment decision was made.
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Maksons Spinning shares were traded at the highest price during the circuit breaker on Sunday. At that time, the company rose to the top in terms of percentage increase in share prices.
Meanwhile, Metro Spinning share prices rose by 4.21%.
On 7 December, Maksons Group announced it will invest around Tk1,000 crore in three new spinning units in the Mirsarai Economic Zone. It inked a deal with the Bangladesh Economic Zones Authority in this regard.
Metro Spinning will invest Tk340 crore while Maksons Spinning will invest Tk254 crore and Tk348 crore in two separate units.
Sources said the Bangabandhu industrial city land lease agreement had been signed, and factory construction will begin after plots are allocated.
However, it is a time-consuming process, and it will take time to start production after the factory is built.
Maksons Spinning was listed on the stock exchange in 2009, and Metro Spinning in 2002.
Although it made a profit of Tk2.92 crore in 2018-19 financial year, Maksons Spinning incurred a loss of Tk8.81 crore in 2019-20 fiscal year.
Meanwhile, Metro Spinning's profit was Tk1.29 crore in fiscal year 2018-19, which came down by around 62% to Tk49 lakh in 2019-20.
According to company sources, Metro Spinning signed a Tk10.31 crore deal to lease 10 acres of land for 50 years in the Bangabandhu industrial city in Mirsarai. Investment in the project will be Tk338.94 crore and about 1,200 jobs will be created.
Further, Maksons Group has leased 20 acres of land to set up two Maksons Spinning factories at a cost of Tk20.63 crore. About Tk254.20 crore will be invested in setting up a textile mill, and Tk347.41 crore for a second unit.
On 7 December, Maksons Spinning share price was Tk6.7, which rose to Tk8.8 in the last four working days, a 31% increase. The company's share price rose by a maximum of 10% on Sunday.
Metro Spinning's share prices rose by 16% since the investment decision was made and share prices were up by 4.21% on Sunday.
The company's share price rose from Tk8.5 per share on 7 December to Tk9.9 on Sunday.
