MJL Bangladesh PLC, a listed company, in partnership with EC Holdings, is set to invest over Tk 2.14 billion in a commercial property project located on Gulshan Avenue in Dhaka.
The board of directors of MJL Bangladesh, at a meeting held on September 30, approved the investment decision as part of the company’s business expansion strategy, according to a disclosure published on the DSE website on Sunday.
The investment will be made on a 50:50 basis with EC Holdings.
MJL Bangladesh Managing Director Azam J Chowdhury said the project is expected to generate stable, long-term fixed income for the company.
The proposed multi-storey commercial complex will be built on a 21-khata plot located in Block SW(C) of Gulshan Avenue, with road access on two sides.
The development will include a high-end shopping mall featuring a range of brand outlets and food courts aimed at attracting a wide consumer base.
“Our project will have a huge fiscal value and become a fixed-income-generating asset for MJL Bangladesh,” Chowdhury said.
MJL Bangladesh is a joint venture between EC Securities, a subsidiary of East Coast Group, and the state-owned Jamuna Oil Company.
The company has a strong track record of profitability and shareholder returns, distributing cash dividends ranging from 45 per cent to 60 per cent between FY’16 and FY’24.
It also issued a 10 per cent stock dividend in FY’16 and 5 per cent stock dividend in FY’18.
In terms of financial performance, the company reported a profit of Tk 1.84 billion in FY’20, which rose to Tk 2.38 billion in FY’21.
Although profits dipped to Tk 1.88 billion in FY’22, they rebounded sharply to Tk 2.76 billion in both FY’23. The profit level remains almost the same in FY’24.
On the Dhaka Stock Exchange (DSE), MJL Bangladesh’s share price increased from Tk 88.50 on May 28 to a high of Tk 104.30 on September 9. It closed at Tk 96.70 on Sunday.
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Source: The Financial Express
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