B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has rejected a proposal by listed company Daffodil Computers PLC to issue shares in exchange for debt owed to a related entity, according to information disclosed by the Dhaka Stock Exchange (DSE).

The proposal, approved by the company’s board last year, sought regulatory approval to convert loans received from “Daffodil Family Concern” into equity. Under the plan, Daffodil Computers intended to issue approximately 32.69 million shares at a price of Tk 15 per share, amounting to Tk 490.35 million.

The company had said the share issuance would eliminate its outstanding debt to Daffodil Family Concern, with the lender receiving shares instead of repayment in cash.

At the time of the proposal, Daffodil Computers’ shares were trading at Tk 142.50 on the stock market, significantly higher than the proposed issue price of Tk 15 per share.

According to the DSE, BSEC formally rejected the application through a letter issued on May 21.

This is not the first time the regulator has turned down a similar proposal from the company. Earlier, Daffodil Computers applied to convert Tk 467 million in loans from its associate entity into equity by issuing 46.7 million ordinary shares at a face value of Tk 10 each. BSEC rejected that application on August 7 last year. The latest rejection means the company will have