The Bangladesh footwear exporter expects fresh capital to support expansion, working capital, and debt repayment.
According to reports, Royal Footwear Limited has returned to Bangladesh’s capital market, planning to raise Tk12 crore through the SME platform, as the footwear manufacturer seeks to strengthen its operations and meet demand in overseas markets.
The company has re-submitted its proposal to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1.2 crore shares through an Initial Qualified Investor Office (IQIO). This move comes after the company withdrew a similar proposal in 2025, citing economic uncertainty and an unfavorable business environment.
Capital market funds to support business needs.
Royal Footwear plans to use the proposed funds across several areas of its business. Of the Tk12 crore, Tk8 crore is earmarked for repaying bank loans, while Tk2 crore would be used to purchase raw and packaging materials.
Another Tk1.67 crore is planned for spare parts, with the remaining Tk0.33 crore allocated towards expenses related to the IQIO process. The funding plan indicates that debt reduction will be a significant use of the company’s capital.
Export demand remains a key focus.
Royal Footwear is an export-oriented synthetic shoe manufacturer that supplies international markets, particularly in Europe and Asia. The company has said growing overseas demand is one of the reasons behind its decision to return to the capital market.
The fundraising plan comes despite a mixed financial performance. In FY2025, Royal Footwear reported revenue of Tk52.91 crore, marginally higher than Tk52.34 crore a year earlier. However, profit after tax declined to Tk2.78 crore from Tk3.19 crore, while earnings per share fell to Tk0.82 from Tk0.94. The company’s net asset value per share, including revaluation, stood at Tk27.54.
Royal Footwear’s renewed fundraising effort also comes as activity on Bangladesh’s SME capital market begins to pick up. In July 2026, BSEC approved the company’s Tk12 crore IQIO, making it the regulator’s first approval for SME fundraising in more than two years.
The development draws renewed attention to the role of the SME capital market as a source of financing for smaller businesses, particularly export-oriented manufacturers seeking funds for expansion, working capital, and financial restructuring.
