STAR BUSINESS REPORT

Envoy Textiles Limited, one of the leading denim manufacturers and yarn producers in Bangladesh, will invest Tk 187 crore to expand its production capacity and acquire land for its factory premises.

The decision, which includes a Tk 179 crore expansion of the company’s open-end rotor spinning capacity and the purchase of adjacent factory land for Tk 8 crore, was disclosed on the Dhaka Stock Exchange (DSE) website yesterday.

Its board on April 26 approved doubling open-end rotor spinning output from 25 tonnes per day to 50 tonnes at the existing factory premises in Bhaluka, Mymensingh.

The project will use recovered materials from current production processes and tap underutilised capacity, with yarn output prioritised for in-house denim manufacturing.

The expansion will be financed through a debt-to-equity ratio of 70:30.

The board also approved the purchase of 50.37 decimals of land adjacent to the Jamirda factory for future expansion.

The company also reported a significant decline in its earnings per share to Tk 1.54 for January-March 2026, down from Tk 2.44 in the same period a year earlier.

Shares of the company declined 4.50 percent to Tk 48.80 as of 12:50pm on the DSE.

Its net operating cash flow per share surged to Tk 16.85 for July 2025-March 2026, compared with Tk 3.27 for the corresponding period of the previous year.

Sponsors or directors of Envoy Textiles Limited own some 65.41 percent stakes. Institutional investors held a significant 22.76 percent.