eGeneration invests Tk8 crore of its IPO fund to buy office space
The company has used around 87% of its IPO fund to accomplish 3 of its IPO fund utilisation plans
The publicly listed IT company – eGeneration Ltd – has invested Tk8 crore of its initial public offering (IPO) fund to acquire office space, as it had declared in its IPO prospectus.
The 5,315 square feet commercial space is on the ninth floor of Ranks Business Centre in Progoti Soroni main road.
Last year, the company raised Tk15 crore through an IPO.
Keep updated, follow The Business Standard's Google news channel
In its IPO prospectus, eGeneration declared to spend Tk8 crore to buy its own office, Tk3.4 crore to pay off high-interest debts, more than Tk1.76 crore to meet the IPO expenses, and nearly Tk1.84 crore to develop a digital healthcare platform.
In the first year of availing the fund, the company has used around 87% of the fund to accomplish three of its IPO fund utilisation plans by acquiring an office space, paying off debts, and financing the IPO expenses.
However, its plan of developing a digital healthcare platform by using the rest of the IPO fund is yet to be implemented.
Responding to a question regarding the update of implementing a digital healthcare platform, the company replied, "We are working on it, keeping in mind that it needs to be implemented within the deadline of two years since receiving the IPO fund."
Besides, the company said in its prospectus that the floor space acquisition would reduce its operating expenses by saving Tk5.85 lakh per month and Tk70.2 lakh per year in office rent.
Moreover, the space is about twice as big as its current office, which will allow eGeneration to accommodate about 100 more human resources for upcoming projects and a bigger innovation lab to carry out continuous research and development works with emerging technology, said the company.
eGeneration was listed on the capital market in 2021 and earns a lion share of its annual revenue from software solution business, especially Microsoft based software.
Alongside software vending, its services also include IT-related management consultancy, IT project implementation and data centre, data analytics, networking, cyber security, system development, and implementation services.
In the 2020-21 fiscal year, its revenue rose 20% to Tk47.58 crore which yielded Tk10.65 crore annual net profit - 13% higher compared to the previous fiscal year.
eGeneration shares closed 2.8% higher at Tk55.5 each at the Dhaka Stock Exchange on Tuesday.
