The Bangladesh Securities and Exchange Commission (BSEC) has rejected Alif Industries’ proposal to raise Tk200 crore through share issuance to its directors, marking a setback for the company’s plan to revive the struggling C&A Textiles. Previously approved under the former BSEC regime, the approval was revoked in September 2024 after Alif failed to secure the funds on time. With both its share issuance and convertible bond plans now blocked, Alif has put the proposed merger with C&A Textiles on hold. Alif Industries, which acquired C&A Textiles in 2021, reported a 16% rise in revenue to Tk80.18 crore and a 33% increase in net profit to Tk11 crore for the first nine months of FY2024–25.
In September last year, BSEC revoked a previously granted approval for Alif Industries' fund-raising plan.
The Bangladesh Securities and Exchange Commission (BSEC) has once again turned down Alif Industries' proposal to raise Tk200 crore through share issuance to its directors, delivering a setback to the company’s efforts to revive the struggling listed firm C&A Textiles.
In a disclosure to the Dhaka Stock Exchange yesterday, Alif Industries stated that the commission has rejected its review application seeking approval to raise capital.
Previously, under the former BSEC regime, the company had received the green light for the fund-raising initiative. However, the newly restructured commission—formed following the ouster of the Sheikh Hasina-led government in August—revoked that approval in September after Alif Industries failed to secure the funds within the designated timeframe.
After the cancellation of its initial approval, Alif Industries submitted a review application to the stock market regulator in October last year, which has now been formally rejected once again.
Alif had planned to raise Tk300 crore through a convertible bond and another Tk200 crore by issuing shares to its existing directors for cash. The capital was intended to revive C&A Textiles Ltd—a company that collapsed after its owners fled the country following a loan scam, leaving it as a non-performing entity.
Under the previous BSEC regime, Alif was granted approval to raise Tk200 crore by issuing 9,09,09,091 ordinary shares at Tk22 each (including a Tk12 premium) exclusively to its current directors in exchange for cash.
Following the approval, Alif Industries moved forward with plans to merge with C&A Textiles. However, with both fund-raising options now rejected, the company has decided to put the proposed merger on hold.
Alif Group had acquired C&A Textiles in 2021 after it had remained closed for several years. The BSEC approved the acquisition on the condition that the factory would resume operations, and trial production finally commenced in August 2022.
Established in 2001, C&A Textiles began commercial operations in 2003.
Meanwhile, Alif Industries reported a 16% rise in revenue to Tk80.18 crore during the first nine months of the 2024–25 fiscal year compared to the same period last year. Its net profit during the July–March period jumped 33% to Tk11 crore, with earnings per share (EPS) of Tk2.26.
For FY24, the company posted a profit of Tk10.43 crore, an EPS of Tk2.36, and paid a 10% cash dividend to shareholders.
