Legacy Footwear set to operate in full swing soon

Publicly listed Legacy Footwear, which had been operating partially for a long time, is set to commence full-fledged operations soon following the resolution of its working capital shortage.

In the fiscal 2022-23, the company's earnings per share stood at Tk0.23, which was a loss per share of Tk0.83 in the previous fiscal. Its net asset value per share was Tk11.19 at the end of June 2023.

The company has recommended a 0.5% cash dividend for its shareholders except sponsors and directors for FY23.

Legacy Footwear's Managing Director Quazi Rafi Ahmad told The Business Standard that the company has paid off all its bank loans, which is the most crucial part.

"We are going to start operations in full swing as we have overcome a working capital shortage and our bank loans have been resolved. We look forward to setting up a local unit within a few months," he added.

Earlier, the company issued three crore shares priced at Tk10 each for three existing directors and 14 other strategic investors by depriving general investors.

The company has been facing challenges due to a lack of working capital, and problems in opening letters of credit (LCs) for the last few years.

To resolve the crisis, it decided to increase its paid-up capital and meet the regulatory requirements.

Also, it was exempted from nearly Tk19.94 crore interest by the Rupali Bank.

The share price of the company stood at Tk82.70 on the Dhaka Stock Exchange on Sunday.