Emerald Oil Industries, a rice-bran oil producer that had somewhat faded from the spotlight, has secured approval from the Bangladesh Securities and Exchange Commission (BSEC) to issue 3.15 crore new shares against an investment by its recent acquirer in the form of a share money deposit.
This strategic move is set to elevate the company's paid-up capital from its current standing of Tk59.71 crore to a robust Tk91.27 crore.
In essence, the augmentation of Tk31.55 crore in paid-up capital will be facilitated through the issuance of 3.15 crore ordinary shares, each valued at Tk10.
The fortunate recipient of these new shares is Minori Bangladesh, a subsidiary of the esteemed Japanese farming entity Minori Co Limited, which assumed control of Emerald Oil in 2021 and resumed production in January 2022.
Adhering to regulatory guidelines, these shares will be subject to a lock-in period.
Addressing inquiries about the seemingly below-market pricing, BSEC Spokesperson Md Rezaul Karim explained that the decision was influenced by the circumstances prevailing at the time of ownership transition.
"The company's share price was in a downturn, reflecting a low net asset value and an absence of income due to production dormancy. Taking these factors into account, the commission sanctioned the issuance of each share at Tk10," he added.
While Emerald Oil Industries recommenced production in January 2022, it faced impediments in achieving full capacity output due to a shortage of gas. Presently, the company is actively engaged in the production of de-oiled rice bran (Dorb) and the renowned Spondon brand oil.
Established in 2008, Emerald Oil Industries Ltd initiated the production of its Spondon-branded rice-bran oil in 2011 and ventured into the stock exchanges in 2014.
Notably, the company's shares concluded trading at Tk114.20 on the Dhaka Stock Exchange on the most recent Thursday.
As of 31 October 2023, sponsor-directors retain a 38.26% stake, institutional investors hold 12.53%, and general shareholders possess 49.21% of the company's shares.