The Bangladesh Securities and Exchange Commission (BSEC) on Thursday allowed Ring Shine Textiles to use Tk40 crore from its initial public offering (IPO) fund to resume operations of its factory.
The decision came at a commission meeting presided over by its Chairman Professor Shibli Rubayat-Ul-Islam, a BSEC press statement reads.
Of this fund, the company will pay Tk15 crore for worker’s retrenchment, Tk3 crore for BEPZA dues, Tk3.5 crore for Titas Gas dues, Tk10 crore for Premier Bank and Tk6 crore for Dhaka Bank as loan payments.
Besides, the company will spend Tk2.5 crore in its miscellaneous sector.
Also read - BSEC sends auditor to Ring Shine Textiles
The commission has also allowed changing the proceeds of IPO utilization of the company through an annual general meeting (AGM).
The commission will also confiscate the placement holders’ shares including bonuses, which did not pay against ownership.
As a result, the company’s current paid-up capital will reduce through share reduction.
On January 26 this year, the securities regulator restructured the board of directors of Ring Shine Textiles in a bid to rescue the company from its worsening condition.
For this to be attained, the BSEC appointed seven independent directors to observe the company's overall condition and make a plan on how to operate it.
The BSEC also appointed Hoda Vasi Chowdhury and Co as a special auditor to review the financial statements, including the export data.
Also read - No shimmer left in Ring Shine Textiles
The company got listed with the bourses on December 12, 2019 to raise Tk150 crore.
Production at its plant at the Dhaka Export Processing Zone has been on halt since September 27 for want of orders from foreign buyers and a shortage of imported raw materials for the global coronavirus pandemic.
A factory layoff within a year of listing, when all the other listed textile manufacturers are running their plants in full steam, is a bad omen, a handful of stock brokerage houses told Dhaka Tribune requesting not to go on record for the report.
When production will start remains a big question seeing that the company’s board of directors and top management are missing in action.
