Savar Refractories decides to be delisted from bourses

2022-08-12

Aug. 11, 2022 - Savar Refractories Limited, a listed company for 34 years, has decided to be delisted from the stock market as the company has been incurring losses since 2013-14.

The board of directors at a meeting on Thursday made the decision of voluntary delisting under the exit plan formulated by the Bangladesh Securities and Exchange Commission.

The current sponsors and directors will offer to the shareholders other than sponsors and directors at the net asset value after considering the revaluation surplus and other balances as part of voluntary de-listing.

The exit plan is subject to an approval of the BSEC and shareholders at a general meeting.

Although share prices of Savar Refractories closed at Tk 261.1 each on Thursday, the company might offer the lowest possible price of Tk 10 each to the general shareholders under the BSEC’s exit rules, BSEC officials said.

Earlier on August 27, 2020, the Beximco Synthetics Limited sought the BSEC’s permission to get delisted from the stock exchanges.

The BSEC subsequently gave approval to the exit plan of Beximco Synthetics in January 2022, under which the company sold shares at Tk 10 each to the general shareholders.

Savar Refractories in its disclosure said, ‘Since the company is witnessing a negative accumulate loss amounting to Tk 1.59 crore due mainly to a scarcity of raw material, reduction in local demand and very small industry capacity, structured business and intensity of completion from international market expose strife of operation of the company’s business in Bangladesh.’

The board of directors has accepted the valuation report on property, plant and equipment of the company as on March 31.

The purpose of the revaluation of PPE was to ascertain fair value of the PPE and valuation of the company for exit plan, the company said.

The main contexts, among others, of the report was that carrying value of PPE Tk 4.60 crore, revaluated value of PPE was Tk 18.71 crore and revaluation surplus value was Tk 14.12 crore as on March 31, 2022.

Savar Refractories was incorporated in Bangladesh as a public limited company as on August 14, 1982 and listed on the Dhaka Stock Exchange in May 1988.

The liabilities of Savar Refractories have exceeded its assets, as the company has been incurring huge losses since 2013-14.

The company engaged in producing bricks for the local market.

Earlier, the DSE delisted Rahima Food Corporation and Modern Dyeing and Screen Printing for keeping their operations closed for more than three years.

Later, Rahima Food was relisted on the main market.