Evince Textiles to issue shares for Evitex’s shareholders
Evince Textiles Limited has decided to issue 7,92,000 ordinary shares for the shareholders of its non-listed subsidiary Evitex Fashions Limited under the merger process.
In May, the High Court gave a verdict in favour of amalgamation of the two companies.
Evince will issue the shares at a ratio of 1:1.8 at face value, subject to the consent of the Bangladesh Securities and Exchange Commission (BSEC).
Evince Textiles, publicly listed since 2016, mainly manufactures, dyes, finishes, and exports 100% cotton woven fabric.
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In November 2021, the company decided to merge with Evitex Fashions in order to cut expenses.
The company deems that the merger will help it reduce management costs and corporate tax, and accounting would also be simpler.
The court has selected Chartered Accountant Rahman Rahman Huq for finding out the actual value of the assets and properties of Evitex Fashions.
Evitex Fashions was incorporated on 11 April 2004 as a private company with Tk8.8 crore paid-up capital. It started commercial operations in 2005 and its factory is located in Gazipur.
Evince Textiles owns 95% of Evitex Fashions. The remaining 5% share is owned by Chairman Anwar-Ul-Alam Chowdhury, Director Shabnam Shehnaz Chowdhury, Managing Director Abu Kawser Majumder, and Directors AK Gouhor Rabbani, and Akhter Shahid of Evince Textiles.
In the January to March quarter of 2023, Evince Textiles' revenue stood at Tk66.67 crore, which was Tk75.59 crore in the same period of the previous year.
Its net profit stood at Tk2.49 crore and earnings per share at Tk0.14 on 31 March 2023.
The company recommended 2% cash dividends for the 2021-22 fiscal year.
As of 31 May 2022, sponsors and directors jointly held 36.67%, institutions 21.56%, and the general public 41.77% shares in the company.
The company's shares closed at Tk9.7 apiece on Thursday at the Dhaka Stock Exchange.
