Saturday, March 15, 2025

Lower cost of fund encourages textile companies to go public

7 cos raise Tk 374.17cr in FY14 against Tk 179cr by 3 cos in FY13
Lower cost of fund has attracted apparel companies to the country’s capital market that resulted in 109.03 per cent or Tk 195.17 crore increase in fund collection by the sector in the just concluded fiscal year 2013-14 compared with that of the previous fiscal year.
Bangladesh Securities and Exchange Commission in the fiscal year allowed seven companies of the textile sector to collect fund worth Tk 374.17 crore compared to Tk 179 crore to three companies in the previous year.
The textile firms feel attracted to enter the stock market instead of banking sector to collect fund for their business expansion as the cost of fund in the capital market is low, experts in the banking sector said.
It is difficult for the domestic companies to make their business viable with high bank interest, competing with the growing domestic market and also in the international market.
The BSEC in last fiscal year allowed Far East Knitting & Dyeing Industries to raise fund worth Tk 67.50 crore, while Shurwid Industries Tk 14 crore, Tung Hai Knitting & Dyeing Tk 35 crore, Hwa Well Textiles (BD) Tk 20 crore, Matin Spinning Mills Limited Tk 126.17 crore and Paramount Textiles Limited Tk 84 crore.
Familitex (BD) raised Tk 34 crore in the fiscal year 2012-13, while Bangladesh Windsor Thermoplastics and Argon Denims raised Tk 40 crore and Tk 105 crore respectively.
Malek Spinning Mills Limited was the lone company that raised Tk 100 crore in 2010-2011, while the Envoy Textiles Limited, Generation Next Fashions, Saiham Cotton Mills and Zahintex Industries raised Tk 265 crore collectively in 2011-12.
Besides, Keya Cotton, Hamid Fabrics, MP Spinning Mills, Keya Spinning Mills, Dragon Sweater and Spinning, Fiber Shine, Royal Denim and Shasha Denims are the other companies waiting to get regulatory approval to raise capital of around Tk 680 crore from the market.
Abdus Salam Murshedy, Managing Director of Envoy Group, said increasing number of listed companies from the apparel sector coming to the capital market is a good sign.
Murshedy, also a former president of Bangladesh Garments Manufacturer and Exporters Association, said it is also helping the industries to undertake expansion plans.
It is difficult for the apparel industries to make their business viable with the banks’ fund, as the landing rate of the banks is around 16-18 per cent for the last couple of year, he said.
To sustain competitiveness, some industries are borrowing from foreign banks as the cost of fund is low there. Due to the same reason, apparel industries are eyeing at the capital market for their business expansion and to get fund, he said.
A BSEC official said that due to the high interest rate in the banking sector, textile industries are availing the opportunity to get fund from the capital market to expand their business.
The trend might fall if the banks’ interest rate reduces to single digit, they said.
About 36 lakh people work in the country’s clothing industry which is the world’s second-largest supplier of garment products after China.
Destination of nearly 60 per cent of the exports is Europe while 23 per cent goes to the United States.
Of the total 260 listed companies presently at Dhaka Stock Exchange, there are 34 textile sector firms. The number is the third largest of companies coming from a single sector.
The textile companies are the tenth in terms of market capitalisation.

-With New Age input

Related News

Green Delta launches Bangladesh’s first insurance for pets

Initially, the policy will cover dogs and cats Sukanta Halder Green Delta has launched the country’s first insurance for pets, which the insurer sees as a milestone for the industry. This innovative product provides crucial financial protection for beloved companion animals, covering a range of unforeseen events, including accidental injuries, critical illnesses, and specified diseases, ... Read more

Apex Bangladesh Fashion Legacy 2025 combines cultural heritage with global style trends

Business Desk : dhakamirror.com Keeping pace with global fashion trends while celebrating the country’s fashion heritage, innovative designs, and sustainable production, the second edition of the “Apex Bangladesh Fashion Legacy Fashion Show 2025” was held in Dhaka. This grand event took place at the Aloki Convention Hall at 7pm on February 8. The fashion show ... Read more

Walton launches ‘AC Exchange Offer’

Business Desk : dhakamirror.com Walton on Wednesday announced launch of ‘AC Exchange Offer’ in which customers can buy Walton’s new air conditioners and get 25 per cent discount in exchange of their used ACs of any brands, said a press release. The company also announced a 5-year warranty facility for some printed circuit board models ... Read more

Grand event ‘GPH Maharaj Darbar’ held by GPH Ispat

Business Desk : dhakamirror.com GPH Ispat Limited, one of the leading manufacturers of steel rebar in Bangladesh, recently organised “GPH Maharaj Darbar-2024.” A total of 185 channel partners of the company across the country participated in the two-day event, according to a press release. The company recognised top-performing partners in various categories based on their ... Read more

SMC’s 50-year journey: innovation and success

News Desk : dhakamirror.com Social Marketing Company (SMC), a not-for-profit organisation, has completed 50 years of remarkable operations in the health sector of Bangladesh. Over the past five decades, the company has achieved significant milestones by marketing innovative products and delivering essential healthcare services. SMC recently organised a programme at the InterContinental Dhaka to celebrate ... Read more

Walton receives orders amounting Tk 350 crore at ATS Expo

Business Desk : dhakamirror.com Walton received orders worth around Tk 350 crore from various local and foreign companies at the “Advanced Technology Solution-ATS Expo 2024”, the country’s sole industrial expo organised by tech-giant Walton. SM Mahbubul Alam, managing director of Walton Hi-Tech Industries, provided the disclosure at the event’s closing ceremony. The three-day expo ended ... Read more

Big price drop on Walton desktops, extra 10% off for online orders

Business Desk : dhakamirror.com Walton Digi-Tech Industries Limited, the leading technology product manufacturing and marketing company in Bangladesh, has come up with a huge price drop on its desktop computers. This attractive price drop is applicable on the company’s AMD Ryzen™ processor-powered Avian series desktops. Under this, customers are enjoying a minimum price drop of ... Read more

bKash wins Mastercard Excellence Awards

Business Desk : dhakamirror.com bKash, the largest mobile financial service (MFS) provider in Bangladesh, recently won an award at the “Mastercard Excellence Awards” in recognition of its exceptional contributions to advancing financial inclusion and fostering a robust digital economy. The MFS provider was awarded by the US-based digital payment provider in the digital business category ... Read more

Dhaka resident buys Marcel fridge, wins car

Business Desk : dhakamirror.com Anisur Rahman, a resident of Uttarkhan, Dhaka, became the first lucky winner of a brand-new car under Marcel’s Digital Campaign Season-21, after purchasing a Marcel refrigerator. This campaign offers customers a chance to win a free car or assured gifts with the purchase of Marcel refrigerators, air conditioners, washing machines, and ... Read more

Banglalink teams up with Vivo to provide special data deals for youth

Business Desk : dhakamirror.com Banglalink, the country’s innovative digital operator, has partnered with vivo to launch a data offer specifically designed for tech-savvy youth. This collaboration aims to provide more convenient access to various digital services and exclusive content. Aligned with the ‘Youth’s Choice Smartphone’ proposition, Banglalink is offering 18GB of free data with the ... Read more

Emirates adjudged Best Airline in the World at the ULTRAs 2024 Awards

Business Desk : dhakamirror.com Emirates has once again been honored with the title of ‘Best Airline in the World’ at the esteemed ULTRAs 2024 Awards. Recognized by thousands of travelers worldwide, the airline stood out for its outstanding products, innovative services, and exceptional value-for-money experiences. Thierry Aucoc, Emirates Senior Vice President Commercial Operations in Europe ... Read more

Remittance rises in Oct, SOBs log larger share

Business Desk : dhakamirror.com Remittance inflow to Bangladesh increased by more than 21 per cent in October compared with that in the same month in the past year, as expatriates favoured official channels, mainly state-owned banks, following a significant political shift in the country on August 5. Bangladesh Bank data showed that remittance inflows reached ... Read more

Oppo celebrates tenth anniversary in Bangladesh with O Fans festival

Business Desk : dhakamirror.com Emphasising celebration and appreciation, OPPO, a leading global technology brand, is excited to announce its SUPER OFFER as part of the ‘O Fans Festival’ to celebrate its 10th anniversary in Bangladesh. The festival theme, “SUPER OFFER,” highlights unforgettable experiences for its dedicated fans through exclusive prizes and substantial super discounts on ... Read more

Bangladesh Travel and Tourism Council launched

Business Desk : dhakamirror.com A new think tank, Bangladesh Travel and Tourism Council (BTTC), has started its journey in a bid to create a network of professionals and businesses to foster collaboration and knowledge exchange in the local travel, tourism and hospitality sector. The council held its first meeting at a hotel in the capital ... Read more

Ethiopian airlines set to touch Dhaka’s runway

Business Desk : dhakamirror.com Ethiopian Airlines, the largest airline in Africa and part of the Star Alliance, will begin operations in Bangladesh next Sunday with its first flight on the new Addis Ababa-Dhaka route. The airline will provide five direct flights each week, giving Bangladeshi travelers access to over 155 global destinations, including major cities ... Read more

Unilever’s 15th edition of BizMaestros launches Nov 3

Business Desk : dhakamirror.com The 15th edition of BizMaestros-UFLP, the flagship business competition of Unilever Bangladesh, embodying the “Thrill of Real Business”, is all set to begin on November 3. As a leading player in the FMCG sector, Unilever Bangladesh has been at the forefront of skill development initiatives for over six decades, establishing BizMaestros ... Read more

Banglalink introduces affordable 4G Phone in partnership with Symphony

Business Desk : dhakamirror.com Banglalink and Symphony have joined forces to launch the “My First 4G Phone” campaign to make 4G technology more accessible and affordable. Through this campaign, they seek to bridge the digital divide by offering high-quality 4G phones at an unbeatable price, empowering more people to benefit from fast, reliable internet connectivity.The ... Read more

Bashundhara Toiletries introduces “Alora 2in1” Hair & Body Wash: first ever in Bangladesh

Business Desk : dhakamirror.com Bashundhara Toiletries announced the launch of “Alora 2-in-1” Hair and Body Wash, an innovative product designed to simplify your daily care routine. As Bangladesh’s first 2-in-1 solution for both hair and skin, Alora offers a unique blend of premium ingredients that cleanse, nourish, and revitalize. “Alora 2-in-1” is formulated with two ... Read more

350cc Royal Enfield set for Bangladesh launch on October 21

Business Desk : dhakamirror.com Ifad Motors, the manufacturer and sole distributor of Royal Enfield motorcycles in Bangladesh, is gearing up to launch the iconic motorcycle brand in the country on Monday (21 October). Four models will be introduced: Bullet, Meteor, Hunter, and Classic and the bikers will have 12 different colour options at competitive prices ... Read more

Luxury car sales slow to a near-stop

Market players blame economic and political uncertainty Jagaran Chakma Sales of luxury sedans and sport utility vehicles (SUVs) have been almost nil since July this year as customers have reined in spending amid the ongoing economic downturn and sudden political changeover in Bangladesh. According to various market insiders, sales have fallen by about 95 percent ... Read more