National Polymer Industries Ltd announced that the subscription for right shares of the company would begin on 24 January, 2021 and shareholders can deposit their amount for offered right shares until 8 February.
The securities regulator recently approved the Tk 54.73 crore right share offer of the company.
The right share offer will let the existing shareholders buy one new share at Tk15 against each share they are holding.
Local merchant bank AAA Finance and Investment Ltd is working as the issue manager to the right offer of the company.
The right share proceeds will be used to enhance the company's production capacity and repay its high-cost bank loan.
The company manufacturing PVC (plastic) doors, pipes, fittings, water tanks and various household items, has already secured the second position in the PVC door market.
At present, National Polymer's total production capacity is 34,362 tonnes. The revenue of the company rose 14% to Tk343 crore in FY20.
During the same period, the company's net profit after paying tax has increased by 18% to Tk15 crore.
The company recommended a 15% cash dividend to its shareholders for the last fiscal year.
To explore the potentials abroad, National Polymer first entered the overseas market in 2014 by exporting products worth Tk20 lakh. In the last fiscal, it exported plastic products worth Tk6 crore.
Beginning operations in 1987, National Polymer was listed on the stock exchange in 1993 with a Tk36.5 crore paid-up capital.
Sponsors and directors currently hold 43.11% of the company's shares while institutional investors 10.19% and general investors 46.70%.
The closing price of each share of the company was Tk69.9 on Sunday at the Dhaka Stock Exchange.