Paramount Textile to buy 80pc stake found in Intraco Solar for Tk 60cr
Paramount Textile is set to get an 80 percent stake in Intraco SOLAR POWERED ENERGY for about Tk 60 crore in a good bid to enter the renewable strength market.
The listed textile-maker has reached an agreement with Intraco CNG to get 29 percent share for Tk 18.48 crore, Paramount Textile said in a disclosure posted on the Dhaka STOCK MARKET (DSE) website yesterday.
"We will buy the remaining 51 % stake from Intraco CNG in the near future," explained Md Robilul Islam, enterprise secretary of Paramount Textile, which experienced its trading debut in 2019.
The business has paid-up capital of Tk 147.69 crore, according to DSE data.
Paramount Textile continued to grow amid the pandemic because of its diversified business style. "And we want to continue diversifying," added Islam.
The federal government approved Intraco SOLAR POWERED ENERGY to create a 30-megawatt plant. The construction is yet to begin.
"We will create the plant at the price tag on around Tk 350 crore," Islam said.
The owners would take loans to finance the project.
The proposed solar power plant project, found in Gongachhora of Rangpur, has a 20-year tenure. The energy tariff will be 18 US cents per kilowatt.
Since Paramount Textile has competence in the power plant business, it made a decision to proceed with the expansion, Islam added.
The textile makers various portfolios made it possible to book higher profits in the July-September quarter of the fiscal year.
In the quarter, Paramount Textile raked in Tk 12.98 crore in earnings from its investment in the power plant project. The company's total earnings was Tk 22.23 crore in the period.
Therefore, the textile-maker topped the chart of listed apparel companies regarding earnings per share, which stood at Tk 1.51 in July-September.
Paramount Textile made a great equity investment found in Paramount BTarc Energy found in 2018. It holds a 49 % stake in the 200-megawatt power plant located in Sirajganj.
"Our last year's business was impacted due to the spread of the Covid-19, however the power plant business saved our earnings growth," Islam added.
The business took home Tk 515 crore in sales from its textile business in 2019-20, a 9.17 per cent drop when compared to previous year. Gross profits declined 6 % to Tk 79 crore in the last fiscal year.
Regardless of the lower gross revenue, Paramount Textile's net profit rose 60 % to TK 65 crore riding on higher revenue from the energy plant business.
The profits from the energy plant segment rose 278 per cent to Tk 36.77 crore.
Yesterday, stocks of Paramount Textile shut 0.69 per cent higher at Tk 58.60.
