B Mirror Report: The board of directors of listed textile manufacturer Malek Spinning Mills Ltd. (MSM) has approved a proposal to increase the paid-up capital of its wholly-owned subsidiary, New Asia Synthetics Ltd. (NSL), according to information disclosed by the Dhaka Stock Exchange (DSE).

The decision was taken at MSM’s board meeting held on June 24, 2026, approving the subsidiary’s capital restructuring plan. Under the proposal, NSL’s paid-up capital will be increased from Tk 66 crore to Tk 90 crore.

The additional capital will be used to acquire strategic land, make supporting investments, meet other operational requirements, and repay liabilities. As part of the capital increase, NSL’s board has proposed issuing shares worth Tk 23.83 crore to MSM on a proportionate basis, which has been approved by the parent company’s board.

MSM said the investment will be financed entirely through its internal funds. Following the capital injection, the company’s ownership stake in NSL will remain unchanged at 99.293 percent.

According to the company, the capital restructuring will strengthen NSL’s financial discipline and operational capacity by supporting debt repayment and facilitating strategic land acquisitions and related investments required for future business expansion.

MSM also noted that implementation of the NSL project had been suspended following approval at its Annual General Meeting on December 27, 2010, due to the failure to secure a gas connection from Titas Gas Transmission and Distribution Company Ltd.

However, the company said it has continued purchasing certain strategically important parcels of land under previous agreements because of the project’s geographic connectivity, location advantages, and security considerations. These ongoing acquisitions have created the need for additional funding to support the project’s future implementation.