Renata Limited, a major pharmaceutical business, has announced the date of its Extraordinary General Meeting (EGM) and the related record date for seeking shareholder approval to raise Tk325 crore by issuing fully convertible preference shares.
The proceeds will be utilized to partially repay the company’s outstanding loans and borrowings.
The EGM will be place on September 20 via a digital platform, with the record date set for August 20 this year.

entirely Convertible Preference Shares (FCPS) are a form of preference share that can be entirely converted into a company’s common (equity) shares after a set length of time or when specific criteria are met.

The Bangladesh Securities and Exchange Commission (BSEC) has indicated that the company must once again seek approval from its general shareholders for the new proposal.

Previously, the company had received authorization to issue Non-Cumulative, Non-Participative, Redeemable, or Fully Convertible Preference Shares. However, since it now plans to issue only Fully Convertible Preference Shares, new shareholder approval is necessary.

In a stock exchange announcement dated 27 July, Renata reported that the BSEC has granted approval for its preference share issuance, which is valid for three months to raise funds as outlined in the consent letter.

Eight months prior, in November, the pharmaceutical company revealed its intention to raise Tk325 crore through redeemable, cumulative, non-convertible, and non-participative preference shares.

Subsequently, on 18 January, Renata’s board modified the type of preference shares to non-cumulative, non-participative, and fully convertible.

Sources indicate that the preference shares will have a tenure of six years, with conversion to Renata’s equity commencing in the third year at a rate of 25% annually over the subsequent four years.

According to its third-quarter financial report, Renata had outstanding loans totaling approximately Tk1,900 crore as of March 2025 — comprising Tk1,224 crore in short-term borrowings and Tk675 crore in long-term loans from various banks.

The company’s short-term loan balance was Tk1,083 crore during the same period in the previous year (March 2024).

The Renata disclosure adds that the regulator’s permission for the issuing of preference shares is contingent on shareholder approval at the next EGM.
“In light of this development, the board will convene an emergency meeting to finalise and approve the record date for shareholders’ eligibility to attend the EGM and apply for the aforementioned preference shares,” the report stated.