Rahima Food Corporation Ltd, a closed edible oil refinery has set example of corporate good governance as it continue providing dividends to its share holders even the factory is closed since long.
Leading industrialist, owner of City Group Mr. Fazlur Rahman is owned the company is preparing re-launch the factory located at Demra, Dhaka by the next couple of months.
The owner is transforming the factory from vegetable oil refinery to a coconut oil factory as Rahima Fodds has been incurred losses due to disadvantage of its old technology based production.
“Erection of the said plant is now going on in full sewing and manage- ment of the company expects to start its commercial operation by June, 2021.,” Md. Hasan, Managing Director of Rahima Food Corporation Ltd told in a latest annual report.
Commercial operation of the company has been shut down since 2013 and sold a portion of land at Demra at a cost of Tk 20 crore, Md Hasn said adding then the entire amount had deposited as fixed at a bank and all expenses along with share holders dividend are given from the earning.
“It is an unique idea, we are so pleased to the company management that they are given us dividends regularly.,” Mobarak Hossain, a share holder said.
“We are expecting that the company will soon go to operation. The share holder spent huge amount of their hard earned money by observing the reputation of City Group and its Chairman Fazlur Rahman,s reputation,” Mr. Hossain said.
Until June 30, 2020 the company has incurred about Tk 2.4 crore operational losses.
In order to return to business operation, the company opened Letter of Credit (LC) in August 2019 to import machinery from China, but due to the pandemic, they are yet to arrive in the country.
The company has already set up gas and electricity connections, updated trade licences, TIN and BIN certificates and other necessary documents.
Rahima Food Corporation Ltd was incorporated on 6 June 1990 as a private limited company, and in 1997, it entered the share market through Initial Public Offering (IPO).
But on 19 July 2018, the Dhaka Stock Exchange (DSE) delisted its share trading because the company was not in operation for a long time.
Its share trading resumed in DSE on 29 December last year under the ‘A’ category after a break of more than two years, while the trading started on Chittagong Stock Exchange (CSE) on 28 December. In November 2020, the BSEC sought an explanation from the DSE for delisting the company. It also issued a directive to the CSE to withdraw its suspension order immediately.
City Group, a leading conglomerate and consumer goods manufacturer in Bangladesh, is helping Rahima Food Corporation make a comeback in business, acquiring a 37.38% share of Rahima’s sponsors and directors.
Rahima Food’s paid-up capital is Tk20 crore. Sponsors and directors hold 37.38%, institutions 20.67%, foreign investors 4.99% and general investors 36.96% of the company’s shares.