Renata to merge its two subsidiaries
Cutting operational costs key reason behind the amalgamation of Renata Agro Industries and Purnava Limited
Renata Limited, one of the leading drugmakers, has decided to merge its two subsidiaries – Renata Agro Industries and Purnava Limited – on approvals of the High Court and other concerned regulatory authorities.
Renata Agro is engaged in agro-processing and poultry feed businesses, while Purnava works for marketing consumer goods.
A senior official of Renata Limited, seeking anonymity, told The Business Standard that Renata itself held the lion's share of the two subsidiaries.
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"But, there are separate management and accounts for the companies, which cost extra money."
"The amalgamation will reduce the costs," he added.
According to the draft document of amalgamation, Renata Agro's paid-up capital is Tk4.20 crore and Purnava's Tk0.25 crore, while Renata Limited owns 99.76% and 99.99% of the shares of the subsidiaries respectively.
In the first half of the fiscal 2021-22, Renata Agro's turnover fell by 65% to Tk4.76 crore, whereas Purnava's sales increased by 28% to Tk39.81 crore.
Meanwhile, Renata's year-on-year consolidated turnover rose by 8% to Tk802 crore during the period and net profit increased by 14% to Tk274.60 crore.
Its share price slightly fell to Tk1,356.60 per share on Sunday at the Dhaka Stock Exchange.
