National Polymer to issue rights shares

The board of directors of National Polymer Industries has decided to issue rights shares to cope with the business growth and strengthen the capital base of the company.

The board has also recommended 22 per cent stock dividend for the year ended on June 30, 2019.

According to an official disclosure, the board has recommended raising paid-up capital of the company through issuance of rights share at a ratio of one right share for existing one share at Tk 20 each, including Tk 10 as premium, after considering 22 per cent stock dividend for the year ended on June 30, 2019.

The issuance of rights share is subject to approval of shareholders at the extraordinary general meeting (EGM) and the Bangladesh Securities and Exchange Commission (BSEC), said the disclosure.

The raised fund will be used to cope with the business growth, strengthen the capital base of the company, repay bank loans and purchase land, it added.

AAA Finance & Investment will be the issue manager for the company's rights issue.

The annual general meeting (AGM) of the company will be held on October 15 in Gazipur. The record date for AGM and EGM is September 22.

Another record date for the entitlement of proposed rights share will be notified later after obtaining approval from the BSEC for the rights issue.

The company will also raise authroised capital to Tk 3.0 billion, from existing Tk 500 million by amending relevant clause of the memorandum of association, subject to the approval of shareholders in the EGM.

The company has also reported earnings per share (EPS) of Tk 4.25, net asset value (NAV) per share of Tk 38.98 and net operating cash flow per share (NOCFPS) of Tk 0.22 for the year ended on June 30, 2019 as against Tk 2.65, Tk 35.51 and Tk 7.79 respectively for the same period of the previous year.

In 2018, the company also disbursed 22 per cent stock dividend.

There will be no price limit on the trading of the shares of the company on Sunday next following its corporate declaration.

Each share of the company, listed on the Dhaka bourse in 1993, closed at Tk 112 on Thursday last on the Dhaka Stock Exchange (DSE).

The company's paid-up capital is Tk 299.11 million and authorised capital is Tk 500 million while the total number of securities is 29.91 million.

The sponsor-directors own 45.43 per cent stake in the company, while the institutional investors own 8.32 per cent and the general public 46.25 per cent as on July 2019, the DSE data show.

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