Ring Shine to resume partial production
Shareholders of Ring Shine Textiles were all smiles after news broke that the company would partly resume production after about nine months' closure.
As a result, the listed garment exporter's stocks rose by around 1 per cent to Tk 11.
In a disclosure on the Dhaka Stock Exchange (DSE) website, the company said it would resume production from June 13 at 25 per cent of its full capacity.
The factory lay-off was also accordingly withdrawn yesterday. Citing the economic turmoil brought about by the ongoing coronavirus pandemic, Ring Shine declared a lay-off last September.
The Bangladesh Securities and Exchange Commission had restructured the company's board in January this year with an aim to change its non-performing status.
The stock market regulator also allowed Ring Shine to utilise its Tk 40 crore IPO funds, which was banned previously.
The company raised funds worth Tk 150 crore from investors in 2019 to set up denim manufacturing units and repay bank loans but the regulator froze its bank accounts in February last year due to various irregularities.
Now, its new board of directors is trying to resume full production after primarily deciding to start with 25 per cent of the production capacity.
After the board was restructured, investors have been hopeful of the company's return to profitability, which has been reflected in its stock price.
Over the past one-and-a-half months, the company's stocks soared to Tk 11 while it was Tk 4.80 earlier, DSE data showed.