The board of Esquire Knit Composite PLC has approved a Taka 5 crore investment in L’Esquire Ltd., a subsidiary of the company.
The endeavour is a component of the business’s continuous investment plan to maximise export potential and guarantee earnings and dividends.
The investment will be financed by taking the same amount out of the company’s Taka 10 crore first investment in the Esquire ICL Apparel Fund.
Prior to this, Esquire Knit Composite Ltd leveraged the investments of two of its partners to invest in L’Esquire Ltd.
On 22nd June 2022, information published on the DSE website stated that Esquire Knit Composite Ltd invested Taka 4.77 crore in its subsidiary company, L’Esquire Ltd.
This investment would be financed based on the withdrawal of equivalent capital invested in its two associate companies, where Esquire Electronics Ltd had Taka 3.75 crore and Esquire Accessories Ltd had Taka 1.02 crore.
On 5th January last year, Esquire Knit Composite Ltd decided to issue preference shares in a bid to finance expansion projects and machinery procurement. The company planned to raise a Taka 100 crore fund by issuing 10 crore preference shares at Taka 10 each, according to a DSE filing.
Out of the funds to be raised, the company would spend Taka 65 crore to finance its expansion projects and machinery procurement, while the remaining Taka 35 crore would be utlised to repay bank borrowings.
The EKCL now has Taka 134.89 crore in paid-up capital and Taka 637.39 crore in reserves and surplus. The company currently owes Taka 199 crore in long-term debt and Taka 394.12 crore in short-term debt.
Since its commercial introduction in 2001, Esquire Knit, which is situated in Sonargaon, Narayanganj, has grown into a conglomerate with knitting, fabric dyeing, and finishing operations all under one roof.