B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has approved an extension of the timeframe for the utilization of funds raised through the rights share issuance of Berger Paints Bangladesh Limited.

According to sources, the decision was taken at a recent commission meeting following a request from the company. Berger Paints had raised capital through a rights share issue on August 20, 2025, intended for business expansion and project development. However, the company was unable to fully utilize the funds within the originally specified timeframe.

The company subsequently applied for an extension, which was reviewed and approved by the regulator. Under the new decision, the deadline for utilizing the rights issue proceeds has been extended until March 31, 2027.

Market analysts note that rights share proceeds are an important source of financing for large corporations to support expansion and new projects. They also emphasize that proper utilization of such funds within the approved timeline is essential to maintain investor confidence and ensure transparency in the capital market.

Berger Paints Bangladesh conducted the rights issue at a 1:1 ratio with a face value of Tk 10 per share, issuing a total of 2,728,111 ordinary shares at Tk 1,110 each, including premium.

The company raised approximately Tk 302.82 crore from sponsors, directors, and shareholders holding 5 percent or more shares. The funds are allocated for establishing a third manufacturing facility at the Mirsarai National Special Economic Zone and covering rights issue-related expenses.

IDLC Investments Limited acted as the issue manager for the offering, which took place between July 15 and August 3, 2025.