Midway Securities Ltd. | Online Stock Broker: Buy and sell shares in the Dhaka Stock Exchange (DSE) using our world class platform, all available online.
  • Home
  • Open BO Account
    • বিও অ্যাকাউন্ট খুলুন
    • Open a BO Account
    • Open Joint BO Account
    • Link Account (লিংক অ্যাকাউন্ট)
    • NRB (প্রবাসী) BO Account
  • DSE Mobile
    • DSE Mobile
    • i-Trade
  • Apply For IPO
  • Branches
  • Pricing
    • Pricing
    • প্রাইস
  • Deposit (টাকা জমা)
    • Deposit (টাকা জমা)
    • bKash, Nagad, Rocket
    • Credit Card (Deposit)
  • Withdraw (টাকা উত্তোলন)
  • Tax Certificate
  • FAQ
    • FAQ
    • বাংলা
  • About Us
    • About Us
    • Our Services
    • Careers
    • Survey
    • Form Download
    • Media
  • Foreign Investors
  • OTC Market
  • Mutual Funds Update
  • Contact Us
  • Latest Market News
  • Blog

​midway securities ltd.

​স্টক * বন্ড * ইকুইটি ইনভেস্টমেন্ট * আইপিও * বাজার গবেষণা * ক্যাপিটাল ম্যানেজমেন্
বিও অ্যাকাউন্ট খুলুন
09609 100 142

Pubali bank to auction Keya factories, founder’s luxury apartment complex

25/4/2021

0 Comments

 
The bank has requested interested buyers to apply within 24 May
Picture
​Failing to recover default loans from Keya Group despite several compromises, Pubali Bank Limited, a lender to the group, now prefers a tougher ending.
The commercial bank has already published an advertisement, inviting tenders for the planned auction of nearly 850 decimals of the land of Keya Group's factory complex along with the factory infrastructure and also the mortgaged luxury apartment complex owned by the sponsor-directors in the capital's Gulshan area.

The luxury apartment complex, where some foreign ambassadors also reside, is now worth around Tk270 crore, according to Pubali Bank's estimation. 

The bank has requested interested buyers to apply within 24 May. 

The auction schedule includes assets owned by Keya Group's flagship company Keya Cosmetics Ltd, Keya Yarn Mills Ltd and its founder Abdul Khalek Pathan and his family members. 

With uncharged interests added, Keya Group and its sponsor-directors owe more than Tk800 crore to Pubali Bank, according to the bank's advertisement for auction. 

However, the total liabilities to the commercial bank were resettled at around Tk500 crore and the client has been trying to tame the bank by paying a lump sum of the actual payable in instalments, according to Pubali Bank officials. 

Pubali Bank Managing Director Safiul Alam Khan Chowdhury told The Business Standard, "Resettling debts, moratorium – nothing worked for recovering loans from the client, and with the central bank's relief period having ended recently, our board decided to try hard now." 

"Recovering the bank's assets is part of our fiduciary duties," he said, replying to TBS queries on why the bank preferred the hard-line during the pandemic.

"We have full provision against the default loans as per the central bank instructions. We also have 42.39% of Keya Cosmetics' shares in lien," said the bank's top executive to assure his own shareholders. 

"In the pandemic situation, we struggled to pay the promised sum of instalments recently and the partial payment resulted in a misunderstanding between the bank and us," said Homaun Kabir FCA, chief financial officer of Keya Group.

He has had a meeting with the bankers on Thursday and expects that the bank would withdraw its advertisement for auction.

The rise and fall of Keya 

Keya Group is an example of how a business can grow fast in Bangladesh and fall at an even faster pace. 

Abdul Khalek Pathan, a professional driver turned entrepreneur, founded his detergent and soap business in the 1990s, which grew to the top tier in the local market alongside achieving export trophies in the early 2000s when the business got listed on the stock market. 

It expanded to export-oriented textile and apparel business seriously and bagged successes there too. 

But, aggressive financial planning, misreporting of assets and liabilities, and the amalgamation of troubled assets with the listed company together resulted in the fall of the once-a-glorious entity. 

Keya Cosmetics Ltd, which owns the group's soaps and detergent business alongside most of the textile units, had absorbed an asset meltdown in the fiscal 2018-19 since the accounting regulator ordered the company to write off fake assets amounting to over Tk1,000 crore. 

Due to a one-off annual loss bigger than its paid-up capital, Keya Cosmetics' net asset value came down to near zero, which saw a slight improvement with some profits posted for the fiscal 2019-20. 

On top of all the shocks, Keya Cosmetics' shareholders have now absorbed another fresh round of uncertainty following the Pubali Bank advertisement inviting tenders for auctioning Keya factories, its founder's luxury apartment complex, to recover default loans. 

Keya's shares closed at Tk5.7 each, which is 1.7% down from the previous session's closing price. 

Against the face value of Tk10 each, Keya Cosmetics' net asset value per share was Tk0.25 at the end of last fiscal year.

SOURCE: ​tbsnews
0 Comments



Leave a Reply.

    Midway News Team

    We publish the latest stock market news to help you decide on your investment decisions. 
    We curate news from different sources.  

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017

    Categories

    All

    RSS Feed

  • ​বিও অ্যাকাউন্ট খুলুন
  • Open BO Account
  • ​Link (লিংক) Account
  • IPO
  • DSE Mobile​​
  • Pricing / প্রাইস
  • Withdraw (টাকা উত্তোলন)​
  • Deposit (টাকা জমা)​
  • Branches
  • FAQ
  • ​Contact Us​
  • Our Services
  • ​About Us
  • Blog
  • Market News
Dhaka Stock Exchange Building (Room No: 508)
9/F, Motijheel C/A, Dhaka 1000
Hotline: 09609 100 142
​info@midwaybd.com
Copyright Midway Securities Ltd. © 2021
Dhaka Stock Exchange Ltd.
  • Home
  • Open BO Account
    • বিও অ্যাকাউন্ট খুলুন
    • Open a BO Account
    • Open Joint BO Account
    • Link Account (লিংক অ্যাকাউন্ট)
    • NRB (প্রবাসী) BO Account
  • DSE Mobile
    • DSE Mobile
    • i-Trade
  • Apply For IPO
  • Branches
  • Pricing
    • Pricing
    • প্রাইস
  • Deposit (টাকা জমা)
    • Deposit (টাকা জমা)
    • bKash, Nagad, Rocket
    • Credit Card (Deposit)
  • Withdraw (টাকা উত্তোলন)
  • Tax Certificate
  • FAQ
    • FAQ
    • বাংলা
  • About Us
    • About Us
    • Our Services
    • Careers
    • Survey
    • Form Download
    • Media
  • Foreign Investors
  • OTC Market
  • Mutual Funds Update
  • Contact Us
  • Latest Market News
  • Blog