After a five-year hiatus, listed business C&A Textiles has restarted production. On Saturday, the company’s dyeing division began trial production. The trial run will be followed by full production. Daily output from the dying facility will be 25 tonnes of cloth. However, the company’s clothing division is not yet ready.
Thanks to the Alif Group, which stepped forward to salvage the textile mill by investing Tk50 crore as a share money deposit, the company had previously paid off its outstanding debts.
The textile business collected Tk45 crore from investors through initial public offers(IPO) when it was listed on the stock market in 2015. Less than a year after it was listed on the stock market, however, its manufacturing was stopped in 2017 as a result of loan fraud.
On July 29, 2020,Bangladesh Securities and Exchange Commission (BSEC) discovered that Bangladesh Shoes Industries Limited, Director Sharmin Akther Lovely, and the Managing Director of C&A Textiles, Rukshana Morshed, had collectively sold approximately 1.22 million shares of the company without first declaring them, pocketing about Tk12 crore from these sales. The regulator later penalized them Tk19 crore and prohibited them from holding director positions at any other listed companies as punishment for breaking multiple laws.
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