Shares of Ifad Autos Ltd jumped 4.42% on the Dhaka Stock Exchange yesterday after announcing plans to invest Tk 80 crore in one of its sister companies.
The board of directors of the listed automobile company has decided to make the investment to acquire 40% of the shares of Ifad Multi Products Ltd. The fund would be raised from the company’s own funds, Ifad Autos said in a regulatory filing.
Ifad Multi Products is one of the sister companies of the Ifad group with joint management.
The purchase of shares will be implemented after obtaining the authorization of the general shareholders.
“We decided to invest in the business to ensure diversification,” said a director of the company, preferring anonymity.
“Ifad Multi Products is a profitable business, therefore shareholders will be rewarded with higher benefits.”
Founded in 2003, Ifad Multi Products is a producer of consumer foods. She began her journey by setting up an automated flour mill.
The company has established itself as a supplier of both consumer and industrial-grade salt, according to its website.
Currently, the company is a leading manufacturer and supplier of instant noodles, stick noodles, biscuits and biscuits, spices, and bottled drinking water.
Ifad Autos imports finished vehicles from Ashok Leyland in India and sells them in Bangladesh. He also brings CKD cars (completely overturned) and assembles them locally.
It sells and markets Farmtrac brand agricultural machinery and spare parts from Escorts Limited, an Indian automotive engineering company that operates in the agricultural machinery, construction machinery, material handling and railway equipment sectors. in Bangladesh.
Sales of Ifad Autos were Tk 657 crore in the nine months to March 31, up from Tk 685 crore a year earlier.
During the same period, it recorded profits of Tk 54.9 crore, an increase of 13% year-on-year.
In another disclosure, Ifad Autos said it has signed an agreement with the Bangladesh Economic Zones Authority (Beza) to lease 30 acres of land for tenancy for 50 years to Bangabandhu Sheikh Mujib Shilpa Nagar in Mirsarai, Chattogram.
The company plans to establish a motorcycle manufacturing and assembly plant, an automotive components plant and a machine lubricant blending plant.
The annual rent is $ 303,514. Ifad Autos paid $ 607,029 as a security deposit to the Beza.