Loss-making Aramit Cement drew investors attention for days


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Loss-making Aramit Cement drew investors attention for days

Aramit Cement, a first generation cement maker got attention by the share holders at the Dhaka Stock exchange for couple of days despite its poor performance and regularity scrutiny.

The company earned a total of Tk10.35 crore revenue during the July and March period of the 2022-23 fiscal year which was  83 per cent  lower than what it was in the same period previous year.

Besides, the company incurred a loss of Tk39.5 crore nn the July-March period of FY23 that was Tk25.8 crore a year ago. The per share price stood at Tk11.66 and net asset value per share at Tk0.97.

Meanwhile, the cement maker was under the BSEC surveillance as it has been continuing  lend money to its affiliate firms without collecting any interest for years violating a regulatory order and depriving investors of expected returns.

Aramit Cement had provided loans of around Tk114 crore to its affiliate companies in that fiscal, according to its auditors comments made at the annual report.

Expressing concern about the dues, the Bangladesh Securities and Exchange Commission (BSEC) recently issued a letter to Aramit seeking an explanation. The regulator has also asked the company to submit a list of its top 20 customers in the last two fiscal years.

The Company Secretary Syed Kamruzzaman did not respond to several attempts of call to his mobile phone in this regard.

A concern of the Aramit Group. The company was incorporated in August 1995 and was listed on the stock exchanges in 1998. The sponsors and directors hold 45.92%, institutions 10.41%, and general investors 43.67% of the company’s shares respectively.

The group has recently desired expression that it wants to invest Tk6.25 crore a proposed digital bank styled “UPAY Digital Bank PLC”.

The paid-up capital of the company is Tk33.88 crore. As of 31 January 2022, sponsors and directors retain 47.14%, institutions hold 13%, and general investors hold 39.86% of the company. As of Wednesday, the closing stock price of Aramit on the DSE was Tk35.10.

Md Jasim Uddin Khan
Md Jasim Uddin Khanhttps://bmirror.net/
Business Reporter, freelancer


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