Paper Processing and Packaging – an over-the-counter (OTC) returnee – wants to more than double its authorised capital to Tk60 crore.
The authorised capital is the maximum amount of capital a company can raise by issuing shares to its shareholders.
The current authorised capital of the printing and publication firm, which mainly cater to the country's education and industrial sectors, is Tk25 crore, which is divided by 2.5 crore general shares having a face value of Tk10 each.
Now the company plans to raise it to Tk60 crore, which will be divided by 6 crore general shares.
To make it happen, the company will have to amend its memorandum of association – the most important document that specifies its operations and purposes.
It will hold an extraordinary general meeting (EGM) on 2 April to get approval from its shareholders to this end.
The company has fixed 10 March to identify shareholders who will attend the meeting.
The Magura Group concern got listed on the capital market in 1990, but later slipped from the mainboard to the OTC platform following non-operation for many years.
Again, the company returned to the mainboard in 2021 and its share trading resumed in mid-2021 under the 'Z' category.
Paper Processing and Packaging is engaged in manufacturing, converting and printing paper and paper products. It makes textbooks, exam sheets, brochures, register books, diaries and training materials.
For six months through December last year, its revenue surged by 298% to Tk27.55 crore, and net profit jumped to Tk2.11 crore from Tk4.01 lakh a year ago.
After returning to the mainboard, the company disbursed a 10% cash dividend to its shareholders for fiscal 2020-21, and now its shares are trading under the 'A' category.