Aamra Networks to issue Tk93cr right shares for loan repayment

Aamra Networks Limited — a publicly listed internet service provider — has decided to raise Tk93 crore by issuing right shares in order to repay loan and expand business.The company said in its disclosure on the Dhaka Stock Exchange (DSE) website on Tuesday, that a portion of the fund will be used to repay loans, and the remaining amount will be used for network system upgradation and network coverage expansion.However, the company is yet to disclose how much of the Tk93 crore will be used for loan repayment and how much for network expansion.To raise the said capital, the company will issue 3.09 crore right shares at a ratio of 2:1. This means, one new share will be issued against two existing shares held by an individual investor. The share price will be Tk30 each, including a premium of Tk20, the disclosure reads.At present, Aamra Networks has a paid-up capital of Tk61.98 crore and a total number of shares of 6.19 crore.To secure shareholders' approval of its issuance of right shares, the company will hold an annual general meeting (AGM) on 4 October. The record date is 12 September.After getting shareholders' approval, the company will seek consent of the securities regulator for the right share issuance.In the first nine months of the 2022-23 fiscal year, the company's long-term loan was Tk39.87 crore and short-term loan Tk17 crore.In FY23, the company's earnings per share (EPS) jumped by 107% to Tk3.64 compared to the previous year.According to its disclosure, the EPS increased because of higher revenue from IT support and software services, as well as internet sales.Its net asset value per share also rose by 9% year-on-year to Tk38.11 in FY23.Its board recommended an 11% cash dividend to the shareholders for FY23. Aamra Networks shares closed at Tk63.90 apiece on Tuesday at the DSE.

Source: The Business Standard

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