To make this happen, the steelmaker will have to amend clause-V of the memorandum of association and clause-5 of the articles of association
SS Steel has decided to increase its authorised capital to Tk500 crore from Tk300 crore.
To make this happen, the company will have to amend clause-V of the memorandum of association and clause-5 of the articles of association.
The 19-year-old steelmaker will place the matter before an extraordinary general meeting (EGM) to be held on September 28 for general investors' approval.
The company will also table its decision to acquire Saleh Steel Industries Limited before the EGM.
The record date for the EGM has been set for September 3.
Earlier, the company's board of directors had decided to make an equity investment in Saleh Steel to subscribe to 99 percent of its existing equity shares worth Tk24.75 crore.
Also, SS Steel will invest Tk134 crore in Saleh Steel. Following the move, Saleh Steel will issue new shares to SS Steel.
In the three quarters of the last financial year, SS Steal posted 9 percent growth in revenue that reached Tk306.46 crore. Its net profit stood at Tk42.47 crore, and earnings per share Tk1.51, at that time.
The company disbursed a 15 percent stock dividend for the year that ended on June 30, 2019.
Listed in January 2019, each share of SS Steel closed at Tk10.90 on August 4 at the Dhaka Stock Exchange (DSE).
Its shares were traded between Tk8.60 and Tk34.10 in the last one year.
The company's paid-up capital is Tk 281.75 crore.
Sponsor and directors had 32.33 percent stake, institutional investors 19.96 percent, and general public 47.71 percent in the company on June 30, 2020, the DSE data showed.