Monno Ceramic's corporate director sells 2m shares in a month to repay loans
Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Monno Welfare Foundation, one of the corporate directors of Monno Ceramic Industries, is going to sell 200,000 more shares from its holding at the prevailing market price in the block market.
The Foundation has already sold 2 million shares of Monno Ceramic in three phases in the past one month from its holding of 12.14 million shares in total.
The corporate director sold these shares in the block market to repay bank loans of Monno Ceramic, said a company official requesting anonymity.
In July last year, Monno Ceramic decided to sell off its unutilized land and use the proceeds of Tk 200 million to pay off its debt. It said the payment would reduce its financial expenses by 30 per cent.
In September 2022, Monno Welfare Foundation, a corporate director of the publicly-listed Monno Fabrics, also sold 5.76 million shares of its holdings to pay off bank loans of Monno Fabrics.
Monno Ceramic is a ceramic tableware manufacturer and considered a pioneer in the industry in Bangladesh.
Presently, the company's total shares are 37.72 million, out of which sponsor-directors hold 18.22 million shares.
Monno Ceramic produces high-quality porcelain tableware products and sells those in the local as well as international markets.
It exports tableware to more than 13 countries. Exports account for around 20 per cent of its total revenue against which the company enjoys 10 per cent cash incentive.
The company has been regularly paying cash dividends to its shareholders. It declared a 10 per cent cash dividend to general shareholders for the fiscal year ended in June 2022.
The company's share closed at Tk 115.70 on Monday, rising 3.40 per cent over the previous day.
Its net profit slumped 81 per cent year-on-year to Tk 1.51 million in the first quarter of the FY23 through September 2022.
Previously, all the directors of the company were penalized by the regulator for manipulating financial statements and not complying with the rules, according to EBL Securities.