Embargo on Runner for issuing bonus shares

The Bangladesh Securities and Exchange Commission (BSEC) placed an embargo on Runner Automobiles Ltd on issuing bonus shares until the latter completes its new three-wheeler manufacturing project.

The decision came at a meeting held at the BSEC office on Tuesday.

Earlier, the company decided to build a new plant in Mymensingh with a budget of Tk63 crore for manufacturing three-wheelers.

Meanwhile, the company has approved the decision from its board of directors and shareholders in its annual general meeting, according to the BSEC.

According to senior company officials, the construction of the three-wheeler plant will be completed within the next two years. 

Earlier this year, Runner Automobiles collected the fund to establish a modern factory and a research centre to boost motorcycle production in Bangladesh. 

Company sources said Bangladesh depends on imports for three-wheelers, which is quite costly. If these vehicles are manufactured domestically, the price will go down. Three-wheelers have a high demand in both urban and rural areas, and the Runner automobiles is optimistic about doing a good business.

Under the company's plans for the new three-wheeler plant in Mymensingh, Tk12 crore will be invested for installing a chassis welding line, Tk7 crore for a body welding line, Tk28 crore for a paint booth and Tk16 crore for assembling and testing units.

The Runner automobiles plans on initial production of 3,000 vehicles per month and 30,000 vehicles per year. 

The company is presently marketing motorcycles and scooters from 50cc to 150cc capacity under its brand. Runner Automobiles is also the country representative of Indian automobile giant Bajaj's cargo vehicles and three-wheelers.