Al-Arafah Islami Bank has initiated a public sale to promote the collateral belongings of Familytex BD Limited, aiming to recover a default loan amounting to Tk48.86 crore. The public sale should be aware of the invites involved in consumers submitting their tenders by 10 July for the organization’s belongings positioned in Chattogram.
Background of the Auction
Familytex BD Limited, a stock exchange-listed company, has fallen behind on a sizable loan. According to an anonymous bank official, the bank had provided ample time for Familytex to repay the loan, but after repeated failures, the decision to auction their assets was made. The assets include three plots and a flat in Chattogram, mortgaged by Mohammed Morshed, the managing director of Familytex, in 2014.
Familytex BD Limited: A Brief Overview
Established in 2003, Familytex BD Limited ventured into the readymade garments quarter with its factory placed in Chattogram's financial area. The organization in 2013, raised Tk34 crore through an initial public supply (IPO) to pay off high-fee loans. Initially, Familytex confirmed its promise, disbursing a a hundred inventory dividend in its first year post-IPO. However, the organization’s fortunes declined, and it's been incurring losses because of the economic 12 months of 2016-17.
Financial and Regulatory Challenges
Familytex published its last financial report in December 2020. According to the Bangladesh Securities and Exchange Commission (BSEC), the enterprise has no longer disclosed any economic effects on account of that. In 2021, an inspection with the aid of the Dhaka Stock Exchange (DSE) revealed that Familytex's workplace and manufacturing facility had been closed. Subsequently, the BSEC reconstituted the agency's board by appointing 5 impartial administrators to shield the interests of trendy shareholders. However, these directors could not assume control due to non-cooperation from the sponsor shareholders, leading to their resignation.
Shareholding and Irregularities
The sponsor shareholders and directors of Familytex have been involved in several irregularities, particularly concerning the sale of shares. Initially holding 45.16% of shares during the IPO, they sold off a significant portion without proper declarations. By January 2019, their holdings had dwindled to just 4.02%. Despite these actions, regulatory authorities have not taken strong measures against the sponsors and directors. Attempts to get in touch with Mohammed Morshed, the managing director, haven't worked out because it's been alleged that he fled because of unpaid loans and his involvement in a share scam.
Current Financial Standing
As of the latest data, Familytex's paid-up capital stands at Tk354 crore with 35.41 crore shares. Institutional investors hold 18.41% of the shares, while the public holds 77.57%. On June 12, the company's shares closed at Tk3.30 apiece, giving it a Tk116.87 crore market value.
Conclusion
The auction of Familytex BD Limited's assets by Al-Arafah Islami Bank presents a critical opportunity for potential buyers to acquire valuable real estate in Chattogram. Interested parties must submit their tenders by 10 July. This auction not only aims to recover the substantial defaulted loan but also marks a significant event in the ongoing efforts to address the financial and regulatory challenges faced by Familytex BD Limited.
