Poorly performing IT firm Intech Limited has restructured its board by electing a new chairman and a vice chairman to revive its business.
According to the Dhaka Stock Exchange (DSE) website, the new board has elected Barrister Khandaker Reza-E-Raquib, a current sponsor shareholder of Modhumoti Bank, as the chairman and Atiqul Alam Chowdhury, director of S Alam Group, as the vice chairman.
The founder of the company, ATM Mahbubul Alam, has resigned from the post of chairman while Shadika Mahbub and Anisuzzaman have resigned as directors.
Early this year, people involved in Chattogram-based conglomerate S Alam Group and KDS Group joined the Intech board as part of complying with the regulatory provision of jointly holding 30% of the company's shares by the shareholder directors.
Seeking anonymity, a director of the company told The Business Standard the new board would reform the management and the company would do better.
The other board members are Khalilur Rahman, chairman of KDS Group, Al-Arafah Islami Bank directors ANM Yeahea and Ahamedul Hoque, AIBL Capital Market Service Limited (corporate director), Khandaker Shakib Ahmed, director of Shahjalal Islami Bank, Syeda Rashida Yeasmin, wife of former chairman of Al-Arafah Islami Bank Badiur Rahman, Dhaka Cotton Mill (corporate director), Shyamol Equity Management (corporate director), and Solar Electro Bangladesh (corporate director).
The old board did not focus properly on the IT business. In 2002, Intech got listed on the stock market.
It started fish farming business after failing to do well in IT. It has a fish farming project on 40 acres of land in Tarakanda of Mymensingh. It also invested in building resorts but the business did not take off.
Last year, the securities regulator fined the company for violating securities rules by investing in fisheries and resorts.
In the fiscal year 2019-20, the revenue of the company was Tk9.13 crore, which was 23% less than that in the previous year.
After paying taxes, the company posted a net profit of Tk46.28 lakh for the current financial year, which is 62% less than that in the previous year.
In the financial year 2018-19, its net profit was Tk1.23 crore.
Besides, in the third quarter of the fiscal year 2020-21, its earnings per share fell by 75% to Tk0.01. At the end of the first nine months of this fiscal year, its earnings per share stood at Tk0.19.
On Tuesday, its share price fell by 5.96% to Tk34.90 each on the DSE.
Currently, the new board holds 30.14% of shares of the company while institutional investors have 8.96%, foreign investors 0.09% and general investors 60.81%.