GPH Ispat Limited, a listed engineering company, has decided to issue rights shares to raise funds for repaying high-interest loans.
The company will issue rights shares at a 2:1 ratio, meaning shareholders will be entitled to two rights shares for every one existing share they hold. The face value of each rights share has been set at Tk 10.
The decision was taken at a meeting of the company’s board of directors held on Saturday (September 12), according to Dhaka Stock Exchange (DSE) sources.
Through the rights issue, GPH Ispat plans to raise Tk 967.76 crore. The proceeds will be used to repay the company’s high-interest borrowings.
The rights issue proposal will be placed before shareholders for approval at the company’s annual general meeting (AGM), scheduled for October 25.
If approved by shareholders, the company will apply to the Bangladesh Securities and Exchange Commission (BSEC) for regulatory approval. The rights issue will become effective subject to BSEC approval.
