Bangladesh Cable Shilpa Limited, a concern of the Telecommunications Ministry, is going to offload it shares by end of this year to finance optical fibre and electrical cable plants.
“We have decided to raise Tk 1.0 billion from the market to expand our business,” post and telecommunications secretary Sunil Kanti Bose told the FE.
The step is part of the government’s broader initiative to list 26 state firms in the stock markets.
The company started its business in 1972 and it never incurred any loss as it has a strong product line, the secretary said.
Bangladesh is now reliant on the import of optical fibre but Mr Bose said if the company sets up plant and goes into operation, it will be able to supply wires in the local market.
“The optical fibre plant will be set up in November and it will start pilot production from December,” he told the FE. “The market is growing and in the future we will have to expand the production base,” he said.
The company is going to diversify its product range to cater to the need of the market, said an official of the company.
The company produces copper cable used in telephone line but the demand for the product is on the decline due to massive rise in demand for cell phone, he said.
The electrical cable plant will produce power cable used for transmission line and electrical wire used in households, he added.
The company has almost completed reevaluation of its asset and liabilities and is going to appoint an issue manager to handle the initial public offering process by October, the official said.
The company ran its operation under ‘no profit no gain’ policy up to 1994 but after that it started working on a commercial basis, he said.
During the 1990s, the state enterprise’s annual profit ranged from Tk 40 to 60 million but profits jumped to Tk 60 million and Tk 100 million in the last decade.
Source: The Financial Express