Ratanpur Steel Re-Rolling Mills Ltd. (RSRM) has decided to collect Tk100 crore from the share market by issuing right shares.
Officials of the company say that the money collected will be invested in modernising the factory and in repaying loans.
The right shares will also adjust the company’s share price to Tk31.68.
At a board meeting held on Tuesday, a decision was made to issue two right shares against every three shares of the company.
The price of every right share will be Tk10. With a premium of Tk5, the total price of every right share will become Tk15.
Earlier, the company had decided to issue every right share priced at Tk20 with Tk10 premium, but this decision was revoked.
The Director of the company Marjanur Rahman couldn’t be reached over the phone despite several attempts at contacting him. But an official said on condition of anonymity that the premium price was reduced because of objections from entrepreneurs, directors and the Bangladesh Securities and Exchange Commission (BSEC).
A special general meeting will be held on October 9 at Shaheen Golf and Country Club in Chattogram to secure the approval of the shareholders.
The company will implement the decision to issue right shares as per the approval of the shareholders and the BSEC
RSRM’s paid-up capital is Tk101,18,90,000 and the number of shares 10,11,89088. The company will issue 6,74,59392 more right shares.
On Wednesday the price of each share of the company was Tk42.70.
After the third quarter of the 2018-19 fiscal year, the Earning Per Share (EPS) of the company was Tk5.52 and Net Asset Value (NAV) Tk49.42.
On June 30, 2018, the company gave its shareholders a 12 percent cash dividend.
The entrepreneurs and the directors hold 47.03 percent shares of the company. The institutional investors hold 21.51 percent and general investors hold 31.46 percent of the shares.