Coppertech to supply copper wires to Mohammadi Electric
The companies have signed a deal where Coppertech will earn a minimum of Tk52 crore annually
Publicly listed Coppertech Industries Ltd – a copper pipe, tube, bus bar, strip, and wires producer in the country – will supply copper wires to Mohammadi Electric Wires and Multi Products Limited - an electric accessories and cables manufacturer.
The companies have signed a deal where Coppertech will earn a minimum of Tk52 crore annually, based on the prevailing market price of copper wires, until the agreement expires.
Coppertech disclosed the news on the Dhaka Stock Exchange (DSE) website on Sunday as price-sensitive information.
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But the disclosure failed to attract investors and the company's share price went down by 0.25% to close at Tk39.4 on Sunday, compared to the previous trading session.
However, from 26 December to 5 January, its share price jumped 26% based on a rumour that the company was going to sign a big business deal of supplying products to cable wire companies.
The rumour turned out to be true on 28 December when Coppertech announced the signing of a deal with the state-owned PVC cable company – Eastern Cables – to supply 100 tonnes of finished copper wire worth Tk11.27 crore.
Coppertech's Company Secretary SK Miraj Ali could not be reached over the phone for comments despite several attempts.
In September last year, Coppertech launched a new project which was built by using its initial public offering (IPO) fund. The company expected that the new project would increase sales by 160% to Tk180 crore.
Company sources say investors will see the financial outcome of this project in the next quarter.
The Bangladesh Securities and Exchange Commission (BSEC) gave its IPO consent letter to Coppertech Industries on 27 February 2019. In April that year, the company received applications and subscriptions from investors for primary shares worth Tk20 crore at a face value of Tk10 each.
In FY21, Coppertech Industries posted a 197% increase in profit riding on an 18.9% growth in sales, and a decrease in other costs compared to the previous year.
Its profit stood at Tk6.42 crore in FY21, which was Tk2.16 crore in the previous fiscal year.
