Renata PLC, one of the country’s leading pharmaceutical companies, has successfully raised Tk 3.25 billion through the issuance of convertible preference shares. The funds raised will be used to repay the company’s high-interest loans, according to sources.

Earlier in July, the Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of these preference shares. Following the approval, the subscription was fully completed on October 19.

Renata reported that out of the total Tk 3.25 billion preference shares, Tk 3.03 billion was subscribed by 525 existing shareholders through the Dhaka Stock Exchange’s (DSE) Electronic Subscription System (ESS). The remaining Tk 220 million was raised through private placement.

According to company data, the tenure of these preference shares is six years. Conversion into Renata’s ordinary (equity) shares will begin gradually after the third year. The conversion will take place in four phases at a rate of 25% per year, with the fixed conversion price set at Tk 475 per share.

As per BSEC’s approval, the financial instrument will be listed on the Alternative Trading Board (ATB). City Bank Capital Resources Limited acted as the issue manager for this offering.

Renata’s latest financial report, covering the third quarter ending in March 2025, shows that the company had taken loans totaling approximately Tk 19 billion from various banks — Tk 12.24 billion as short-term and Tk 6.75 billion as long-term borrowings. In the same period of the previous year (March 2024), the company’s short-term loans stood at Tk 10.83 billion.