Imam Button Industries Ltd, a publicly listed company specializing in button production for the apparel sector, has unveiled plans to establish a shoe-making unit within its Chattogram factory premises. As per the disclosure on the Dhaka Stock Exchange (DSE), the company intends to set up a leather unit to manufacture shoes for the local market. The project’s total cost is estimated at Tk11.55 crore, with an initial investment of Tk4.25 crore and the remaining Tk7.3 crore to be invested progressively. The leather unit will span approximately 19,500 square feet, with a 1,000 square feet office area. The projected production capacity is 1.6 lakh pairs per annum, expecting an annual profit of Tk2 crore. Managing Director ASM Hasib Hasan expressed the company’s focus on the local shoe market and future plans for shoe exports, contingent on a positive response from the local market.
Regarding the declaration of an interim dividend in the first quarter, Hasan mentioned the company’s recent leasing of a running agro project in Barguna, generating revenue that led to the dividend declaration. The Bangladesh Securities and Exchange Commission (BSEC) has directed the DSE to investigate an unusual surge in Imam Button’s share price, which rose by 85% between September 7 and October 26. The share price increased by 2.98% to Tk203.80 on Tuesday. The investigative report, mandated by the BSEC, is expected within 15 working days. Hasan welcomed the regulatory scrutiny, acknowledging surprise at the abnormal share price hike.
Imam Button, whose shares experienced a significant jump from Tk82.8 on May 21 to Tk213.8 on November 22, reported a 1% interim cash dividend in the first quarter, marking its first dividend declaration since the fiscal year 2009-10. Notably, the company achieved a net profit for the July-September quarter after incurring losses since 2011. It is worth mentioning that Imam Button is a subsidiary of Imam Group, whose owners are fugitives in connection with a loan scam. In February, the BSEC restructured the company’s board, appointing independent directors and directing them to nominate shareholder directors based on specific criteria.