Star Feed to become contract manufacturer for Aman Feed
Private feed producer Star Feed Mills Ltd is set to become the contract manufacturer for Aman Feed Ltd.
The board of directors of Aman Feed has decided to enter into an agreement with Star Feed to this end, said stock exchange sources. The agreement will come into effect from today (Thursday).
Under the agreement, Aman Feed, a listed company, will supply raw materials to Star Feed for feed production.
Keep updated, follow The Business Standard's Google news channel
Sources said Star Feed Mills will produce a maximum of 6000 tonnes of finished broiler and layer feed per month, which Aman Feed will sell through its existing distribution network all over the country.
After execution of the agreement, the maximum sale volume of Aman Feed is expected to increase up to 72000 tonnes per month, generating an estimated Tk345 crore during the agreement period.
The venture is expected to increase the listed company's profit by Tk10 crore.
Aman Feed got listed on the country's stock exchanges in 2015. It has raised Tk72 crore by issuing two crore shares at Tk36 each, including a Tk26 premium, through an initial public offering (IPO).
From January to March quarter of 2022, the company's revenue was Tk251.89 crore, which was Tk181.31 crore in the same period of the previous year.
During the period, its net profit came down 64.35% and stood at Tk2.05 crore, which was Tk5.75 crore.
As of 31 March 2022, sponsors and directors jointly held 63.26%, institutions 10.28%, foreign investors 0.05%, and the general public held 26.41% shares in the company.
On Wednesday Aman Feed's share price closed at Tk42.60 on the Dhaka stock exchange.
