Ragib Rouf Chowdhury Alam

KDS, S Alam groups became the new shareholders of Intech Ltd

S Alam Group and KDS Group have recently joined the board of directors of Intech Ltd, after buying shares of the listed company. At the company's annual general meeting on 22nd March (Monday) approval of shareholders will be sought for the 12 elected directors and three independent directors.

The regulatory body selected 12 shareholders, excluding the previous directors except for the chairman. The company’s board of directors currently holds 30.14 per cent of the total shares.

Intech Limited, an IT sector company has been poor performing in recent years. The company's three sources of revenue are Internet services, software and other, as well as the fisheries sector.

In the fiscal year 2019-2020, the total revenue of the company was Tk9.13 crore, which is 23 per cent less than the previous year.

The company posted a net profit of Tk46.28 lakh for the current financial year after paying taxes, which is 62 per cent less than the previous year. In the financial year 2018-2019, the net profit was Tk1.23 crore.

In the current fiscal year, the total revenue was Tk4.92 crore and the net profit was Tk55.66 lakh. In the first six months of the financial year, total income decreased by 6 per cent compared to that of the previous year, but profit increased by 49 per cent.

Although the company’s revenue from fisheries declined, 54 per cent of its total revenue came from this sector. The company earned Tk2.65 crore from fisheries and Tk2.25 crore from its Internet and software business.

ATM Mahbubul Alam, chairman of Intech Ltd, hopes to overcome the crisis and move forward with the addition of the new directors

The newly appointed directors are also on the boards of Al-Arafah Islami Bank Limited, National Bank and Shahjalal Islami Bank - all private-sector lenders.

They have joined the board as part of complying with the regulatory provision of holding 30 per cent of the company's shares, jointly, by the shareholder directors.

In the financial statement for fiscal 2019-2020, he said, "The newly appointed 12 shareholder directors enabled the company to comply with the regulatory provision."

The company has a fish farming project on 40 acres of land in Tarakanda of Mymensingh.

On 15th July, 2019, the Bangladesh Securities and Exchange Commission (BSEC) made it mandatory for sponsors and directors to jointly hold a 30 per cent stake, with each director owning a minimum of 2 per cent shares.

In December 2020, the commission, headed by its Chairman Professor Shibli Rubayat-ul Islam, issued a directive imposing strict conditions on compliance.

As of 7th December, 2020, the company had two directors - a chairman and an independent director - according to Intech Ltd. Collectively, these directors owned only 3.97 per cent shares of the company.

Khalilur Rahman, chairman of the KDS Group, who bought 6.26 lakh shares, has been elected as a shareholder director. Atiqul Alam Chowdhury, a representative of S Alam Group, bought 6.40 lakh shares.

Al-Arafah Islami Bank directors ANM Yeahea and Ahamedul Hoque, who represent S Alam Group, bought 6.27 lakh and 6.27 lakh shares of Intech Ltd, respectively.

Barrister Khandaker Reza-E-Raquib, a current sponsor shareholder of Modhumoti Bank, has been elected as vice-chairman of Intech Ltd. He bought nearly 6.32 lakh shares of the company.

AIBL Capital Market Service Limited bought 13.13 lakh shares of the company and nominated a director to the restructured board.

Khandaker Shakib Ahmed, a director of Shahjalal Islami Bank, also bought 6.27 lakh shares and Syeda Rashida Yeasmin, wife of Badiur Rahman, former chairman of Al-Arafah Islami Bank, bought 6.26 lakh shares.

Dhaka Cotton Mill bought 6.60 lakh, Shyamol Equity Management 6.27 lakh and Solar Electro Bangladesh 6.45 lakh shares of the company. The companies also nominated directors for the Intech board.

Source:

THE BUSINESS STANDARD