S. S. Steel to invest in Saleh Steel Industries
FE ONLINE REPORT | Tuesday, 4 August 2020
The board of directors of S. S. Steel Ltd has decided to make equity investment in Saleh Steel Industries with a view to subscribe 99 per cent of its existing equity shares amounting Tk 247.50 million and invest further Tk 1.34 billion for smooth operation.
Saleh Steel Industries Ltd will issue new shares to S. S. Steel Ltd in this regard, according to an official disclosure on Tuesday.
The company has also informed that Saleh Steel Industries is a reputed steel industry in Bangladesh, engaged in production and selling steel by its renowned brand name and capacity of the Saleh Steel is around 84,000 Metric Ton per annum.
The said investment alone is expected to increase turnover of S. S. Steel Ltd by approximately Tk 5.0 billion per annum towards the year which can potentially increase the profitability of the company substantially.
The invested amount shall be financed by the company and partly from taking share money deposits from directors.
The company solicits full-fledged cooperation from their valued stakeholders. Venue, date, and time of the extraordinary general meeting (EGM) will be notified later.
Listed in January 2019, each share of the S. S. Steel closed at Tk 10.80 on Monday at the Dhaka Stock Exchange.
Its share traded between Tk 8.60 and Tk 34.10 in the last one year.
The company’s earnings per share (EPS) stood at Tk. 0.36 for January-March 2020 as against Tk. 0.53 for January-March 2019.
In nine months for July 2019-March 2020, its EPS was Tk. 1.51 as against Tk. 1.30 for July 2018-March 2019.
The company disbursed a 15 per cent stock dividend for the year ended on June 30, 2019.
The company’s paid-up capital is Tk 2.81 billion, authorised capital is Tk 3.0 billion and the total number of securities is 281.75 million.
Sponsor-directors own 32.33 per cent stake in the company while the institutional investors own 19.96 per cent, and general public 47.71 per cent as on June 30, 2020, the DSE data showed.