Golden Harvest defers right share fund utilisation due to Covid-19

Frozen food manufacturer - Golden Harvest Agro Industries - has deferred its right share fund utilisation by one year as a result of the disruption in importing machinery required in its food factories amid the Covid-19 epidemic.

Out of the total Tk89.93 crore, almost Tk19.83 crore has remained un-utilised till December 2021 due to the delay in machinery imports.

During its annual general meeting on Thursday, the company and its shareholders approved a time extension till 21 January 2023 to utilise the remaining fund as a special resolution.

Next, the company will seek permission for extending the time from the Bangladesh Securities and Exchange Commission.

In December 2019, the company got the nod to raise Tk89.93 crore by issuing 8.99 lakh shares based on three right shares against existing every four shares.

The purpose of issuing the right share was to raise further paid-up capital for expansion of existing production and distribution channels and to pay off the bank loan.

The tenure of the fund utilisation was fixed as December 2021 and the loan repayment tenure was three months from receiving the right share amount.

According to the report up to September 2021, Tk20.88 crore remained unutilised, of which Tk14.69 crore was for machinery and equipment, and Tk2.47 crore for civil and construction purposes.

The company was listed on the stock exchange in 2013. Due to the epidemic, it faced a blow and incurred losses in the 2020-21 fiscal year.

The company has approved a 3% final cash dividend for general shareholders other than sponsors, and directors (a total of 5% cash including 2% interim cash dividend). Due to this dividend, the company has been downgraded to the 'B' category from the existing 'A' category.