IFAD Autos to invest Tk80cr to diversify business
IFAD Autos imports different models of complete Ashok Leyland’s vehicles as well CKD and spares from the company to assemble locally
Highlights:
- IFAD Autos to acquire 40% shares of IFAD Multiproducts
- The firm will make the finance with its own fund
- Its revenue Tk657.81cr in July to March of FY 2021
- Net profit Tk54.96cr during the period
IFAD Autos Limited, the Bangladeshi dealer for Indian automotive company Ashok Leyland, has decided to invest Tk80 crore with a view to acquiring 40% shares of the IFAD Multiproducts Limited.
The company, which has dealings in vehicles with different sectors of Bangladesh, made the decision to diversify its business.
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IFAD Autos imports different models of complete Ashok Leyland's vehicles as well CKD and spares from the company to assemble locally.
An official said the company deems that the market of consumer goods has good potential in the country.
Besides its existing products, the company has plans to launch new products. For this, the management of the company has taken this decision, he added.
IFAD Autos will take approval from the shareholders in the forthcoming general meeting of the company.
Furthermore, the investing amount will be financed from company's own fund.
Recently, IFAD Autos Limited signed a land-lease agreement with Bangladesh Economic Zones Authority (Beza) by which the company will expand its manufacturing facilities on 30 acres of land at the Bangabandhu Sheikh Mujib Shilpa Nagar.
The company IFAD will invest $51 million to set up a car assembly factory, lubricant blending plant, and light engineering industry, which will create employment for about 880 people.
IFAD Multiproducts Limited is one of the sister concerns of IFAD Group, having common management.
From July to March 2021, the revenue of the company was tk657.81 crore.
Consequently, its profit was Tk54.96 crore and earnings per share was Tk2.17.
IFAD Autos Limited was incorporated on 17 February 1988. It was listed on the stock exchanges in 2015.
Out of the company's total shares, sponsor and directors jointly hold 54.87%, institutional investors 26%, foreign investors 0.83%, and general investors 18.30%.
The last trading price of the company's shares at the Dhaka Stock Exchange was Tk56.70 each on Sunday.
