Bank Asia has announced the auction of the assets of Hamid Fabrics listed in the stock market to recover the outstanding debt of Tk 55.96 million.
A notice published in a daily newspaper last week invited interested buyers to submit price quotations by December 29. The auction includes 296.50 decimals of land along with factory buildings and machinery located at Narsingdi, all of which are owned by Hamid Fabrics.
Abdullah Al Mahmoud, Managing Director of Hamid Fabrics, told the media, “It is very unfortunate.” We are in discussion with the bank to resolve the issue and hope it will be resolved soon.
Sources in the bank said the company first took a demand loan for working capital, which was later converted into a term loan. Despite multiple notices, Hamid Fabrics failed to pay the loan installments on time, prompting the bank to initiate the auction process.
Hamid Fabrics has three production units in its factory. The woven fabric unit has an installed capacity to produce 32.40 million yards per annum. The weaving units have an annual capacity of 9.88 million yards and the dyeing units have a capacity to produce about 1.37 million kg of yarn.
According to the financial report, Hamid Fabrics’ assets are worth Tk 571 crore and total equity is Tk 296 crore.
According to the industrialists, the entire Narayanganj-Narsingdi region, including Hamid’s factory area, is severely affected by the gas crisis. As a result, most of the factories in this region are not able to run at full capacity.
To mitigate this problem the company has invested in alternative energy sources like LPG. A senior official of the company said that their operating expenses have increased significantly. As a result, the company’s business has a negative impact.
Hamid Fabrics was listed on the stock market in 2014. For three years from 2015 to 2017, the company has paid dividends to investors at the rate of 15 percent. Then from 2018 to 2020 it gave cash dividend at the rate of 10 percent. From 2021 to 2023, it has given cash dividend at the rate of 5 percent.
Last 30th June 2024 gave ‘no dividend’. The company posted a loss of Tk 4.6 paise per share during the year under review.
In the first quarter of the current financial year, the loss per share was 1 taka 6 paise. The profit per share was 11 paise during the same period last year.
