Dhaka, Bangladesh (BBN)-Bangladesh Securities and Exchange Commission (BSEC) on Tuesday allowed GPH Ispat to raise nearly BDT 2.62 billion through rights issue.
A rights issue is an issue of rights to a company’s existing shareholders that entitles them to buy additional shares directly from the company in proportion to their existing holdings within a fixed time period.
BSEC, the regulator of the capital market in Bangladesh, gave the nod to the GPH Ispat by approving its application to collect the amount.
The approval came during a meeting of the BSEC presided by its Chairman Prof M Khairul Hossain.
GPH Ispat, which was enlisted on the Bangladesh stock exchanges in 2012, will issue over 187 million rights shares of BDT 14 each, including BDT 4.0 as premium to its existing shareholders.
Three rights share will be offered for existing two shares and the raised fund will be used for expansion of GPH Ispat by using ultra-modern long-steel technology.
The Chittagong-based steel maker’s net profit rose five per cent year-on-year to BDT 292.8 million in 2015.
On the premier bourse, each share of the company traded between BDT 43.6 and BDT 45, before closing at BDT 45.1 on Tuesday.
Sponsor-directors hold 59.65 percent stake in GPH Ispat, institutions 14.43 per cent and general investors the remaining 25.92 percent.
during the Tuesday’s meeting, the BSEC also fined directors of Phoenix Insurance BDT 2 lakh each for disclosing inflated earnings per share in the company’s quarterly reports.
The stock market regulator also imposed a BDT 2 lakh penalty on the listed firm’s managing director for the same offence.
In another move, the BSEC also fined directors of Jago Corporation BDT 2 lakh each for failing to submit financial statements for the year ended on December 31 in 2014.
BSEC also fined directors of M Hossain Garment Washing and Dyeing Khaza Mosaic Tiles and Stone Industries BDT 2 lakh each, and Saleh Carpet Mills directors BDT 1 lakh each for failing to submit financial statements in stipulated time.