BM Desk : A zero-coupon bond and preference shares will be issued by Paramount Textile, a listed company of the Paramount Group, to fund Tk630 crore for the purpose of repaying current high-cost debt and expanding production capacity.
According to corporate sources, the decision was made at a board meeting on Thursday. Paramount Textile intends to raise Tk300 crore through preference shares, each with a face value of Tk10, and Tk330 crore through the issuance of a zero-coupon bond. Eligible investors will be able to purchase the instruments through a private placement.

The zero-coupon bond will be non-convertible, transferable, fully redeemable, and unsecured. Meanwhile, the preference shares will also be non-convertible and redeemable, providing a 12% annual dividend with semi-annual redemptions over a period of five years.

Both long-term debt instruments require approval from the Bangladesh Securities and Exchange Commission (BSEC).

Mohammad Jahidul Abedin, the chief financial officer of Paramount Textile, informed TBS that part of the capital raised will be allocated to pay off high-interest debt, while the remaining funds will be directed towards expanding production facilities to accommodate increasing demand.

On Thursday, Paramount Textile shares closed 0.49% higher at Tk41 on the Dhaka Stock Exchange (DSE). Over the past week, the shares have surged by more than 7%.

As of March 2025, Paramount Textile reported long-term loans amounting to Tk1,658 crore, along with short-term borrowings of Tk663 crore from various banks, non-bank financial institutions, and foreign lenders.

In recent years, the company has invested Tk205 crore to enhance its existing production capacity. Furthermore, it has previously diversified into the energy sector by investing in four power plants – Dynamic Sun Energy, Intraco Solar Power, Paramount Solar, and Paramount Btrac Energy Ltd.

Among these power plants, Paramount Btrac Energy is currently not operational due to the expiration of their respective power purchase agreements.

In the meantime, Paramount Textile announced that during the July–March quarter of the fiscal year 2024–25, its consolidated net profit increased by 10%.
Its net profit increased from Tk87.50 crore during the same period in the previous fiscal year to Tk96.40 crore during this period.
Its consolidated EPS at the end of the first nine months of FY25 was Tk5.22, up from Tk4.64 during the same period of the prior fiscal year.
In comparison to the same period last year, revenue increased by 17% to Tk943.81 crore in the first three quarters of FY25. With an EPS of Tk6.62, Paramount Textile generated a profit of Tk107.77 crore in FY24. It distributed a 10% stock dividend and a 5% cash dividend to its owners.