B Mirror Desk : Concerns have emerged regarding the funds generated from the initial public offering (IPO) of ADN Telecom Limited, a company in the information and technology sector, as well as the development and investment activities in the hi-tech park related to the stock market. In response, the Bangladesh Securities and Exchange Commission (BSEC) has opted to investigate the situation.
To facilitate this inquiry, the BSEC has established a three-member committee tasked with reviewing the allocation of the company’s IPO proceeds and related investment details. This committee is expected to deliver its findings within the next 60 days. According to reliable sources within the organization, further actions will be determined based on the committee’s report regarding ADN Telecom.
The members of the investigation committee are BSEC Deputy Director Mustafizur Rahman, Assistant Director Niloy Karmakar and Dhaka Stock Exchange (DSE) Deputy Manager Utpal Chandra Debnath. The commission has also informed ADN Telecom in writing about the formation of the committee.
BSEC sources said that ADN Telecom has collected Tk 57 crore from the stock market. It has raised Tk 356.25 crore by issuing 1 crore 18 lakh 75 thousand shares at Tk 30 each through the book building method. ADN Telecom is scheduled to spend the money raised through the IPO on physical infrastructure development, setting up a data center, repaying bank loans and IPO expenses.
ADN Telecom had announced to build a new factory in Sylhet Hi-Tech Park in 2024 to expand its business. In 2023, the company announced to buy 235 decimals of land in Kaliakair Hi-Tech Park. But suddenly, the company’s income and profit were affected significantly. In the latest 2024, ADN Telecom made a profit after tax of Tk 149.5 crore. Which is 42.15 percent less than the previous financial year. In 2023, the company’s profit after tax was about Tk 258.8 crore. Therefore, BSEC has decided to investigate the company.
According to the information, BSEC wants to investigate the sector in which ADN Telecom has spent the money raised through the IPO. Similarly, the investigation committee formed will also verify whether the company has made other investments, including land leases in various hi-tech parks, in the correct manner.
ADN Telecom Limited has paid a 10 percent cash dividend to shareholders in the fiscal year ending June 30, 2024. The company’s consolidated earnings per share (EPS) in the fiscal year in question was 2 taka 31 paisa. Similarly, the net asset value per share (NAVPS) stood at 31 taka 35 paisa.
Meanwhile, ADN Telecom has made the highest after-tax profit of 258.5 million taka in the last five years in the fiscal year 2023. In return, the company paid a 15 percent cash dividend to investors.
ADN Telecom Limited was listed on the stock exchange in 2019. The total paid-up capital of the ‘A’ category company is 646.52 million taka and the total number of shares is 646.51 thousand 666. As of March 31 of this year, the company’s entrepreneurial drivers hold 42.81 percent, institutional investors hold 23.54 percent, foreign investors hold 1.99 percent and general investors hold 31.66 percent.
