Photo: Courtesy
The merger with two subsidiaries of FAR Group revived production for RN Spinning and FAR Chemical, both listed entities. Remarkably, both companies successfully returned to profitability in the last quarter.
After visiting both group factories, the reporter found the companies fully functioning.
In October of last year, the securities regulator approved the mergers of Samin Food and Beverage Industries and Textile Mills Limited with RN Spinning Mills Limited, and SF Textile Industries Limited with FAR Chemical Industries Limited to revive both entities for better operation.
In January last year, the High Court also approved both the listed firms to merge with their non-listed subsidiaries. After the amalgamation, the new entities will be known as FAR Chemical and RN Spinning.
All four companies belong to the FAR Group, with RN Spinning and FAR Chemical being listed on the stock exchanges. FAR Chemical – a concern of FAR Group – manufactures and exports chemical products to different export-oriented textiles, dyeing, and apparel industries.
According to the Dhaka Stock Exchange (DSE), RN Spinning has been counting losses since the fiscal 2018-19, as its operations fully closed in 2019 due to a fire incident. On the other hand, FAR Chemical’s spinning unit is running now. However, its chemical unit closed a few years ago due to the nosedive chemical business of the group.
Md Humayun Kabir, director of marketing of FAR Group, said “RN Spinning’s operation has been closed for around five years due to a fire incident. Investors also did not get anything during the period. We try to change this situation for the better. After the merger, we have been able to back in business properly. We hope, investors will get better returns from now.”
He said FAR Chemical is also in a running factory with two units. The company diversified its business by investing Tk300 crore for a spinning unit before the merger, which is running. its daily spinning capacity is 18 tonnes with 33,600 spindles.
In the July to March period of the current fiscal, RN Spinning made revenue of Tk280.65 crore, which was Tk272.89 crore in the same period of the previous year.
Its profit after tax stood at Tk2.74 crore and earnings per share stood at Tk0.09.
RN Spinning’s share closed at 15 on the Dhaka stock exchange on Thursday
In the July to March period of the current fiscal, FAR Chemical achieved revenue of Tk213.38 crore, which was Tk156.98 crore in the same period of the previous year.
Its profit after tax stood at Tk4 crore, which was a loss of Tk8.20 crore in the same period of the previous year.
Its earnings per share stood at Tk0.26 and its net asset value per share was Tk32.59 end of March 2024.
FAR Chemical’s share closed at 22.60 on the Dhaka stock exchange on Thursday.
Messenger/Howlader
