The Bangladesh Submarine Cable Company Ltd (BSCCL) has decided to issue shares worth Tk1.48 crore against Tk166 cr share money deposit to the government following the Financial Reporting Council's direction.
The board of directors of BSCCL has approved the plan at a meeting that held Tuesday (28 December).
The share issue plan will be implemented after approval from the shareholders and securities regulator.
Last year, the company appointed ICB Capital Management Ltd as issue manager to determine the share price.
As per the issue manager, BSCCL got Tk140 crore from the government as share money deposit in fiscal 2015-16.
At the end of that fiscal year, its share price was Tk110.20 each at the Dhaka Stock Exchange (DSE). At that price, they will issue 1.27 crore shares. The rest of the shares will be issued at Tk120.10 each.
According to BSCCL, the company received Tk166 crore as share money deposit from the government for implementing the "Regional Submarine Telecommunication Project".
It has been decided to issue shares at this rate so that the general shareholders are not harmed.
In February last year, the financial reporting council issued a directive saying that share money deposits must be converted into the company's capital within six months of receiving the money.
Currently, its paid-up capital is Tk164.90 crore and the government holds 73.84% shares of the company.
At the end of the Tuesday trading session, its share price closed at Tk190.50 at the DSE.