Rights shares subscription of National Polymer Industries is set to begin on January 24, 2021, aiming to raise Tk 547.38 million through rights issuance.
The subscription period for the company’s rights shares will be continued until February 8, 2021, according to an official disclosure on Sunday.
The record date for entitlement of rights share is January 7, 2021.
The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price.
On December 15, Bangladesh Securities and Exchange Commission (BSEC) approved National Polymer’s application to raise Tk 547.38 million through rights issue.
As per the BSEC approval, the company will issue more than 36.49 million rights shares of Tk 15 each, including Tk 5.0 as a premium per share.
The company will issue one rights share for existing one share (1R:1).
The purpose of issuance of rights share is to support the business growth (land purchase and land development, import of capital machinery), finance the increased working capital need along with repayment of bank loans.
AAA Financial & Investment Ltd is working as the issue manager.
The National Polymer Industries’ earnings per share stood at Tk 4.25 and net asset value (NAV) per share of 38.98 (with revaluation) for the year ended on June 30, 2019, as per the rights offer document.
Each share of the company, listed on the Dhaka bourse in 1993, closed at Tk 71.60 on Thursday at the Dhaka Stock Exchange (DSE).
The company’s paid-up capital is Tk 364.92 million and authorised capital is Tk 3.0 billion while the total number of securities is 36.49 million.
The sponsor-directors own 43.11 per cent stake in the company, while the institutional investors own 10.19 per cent and the general public 46.70 per cent as on October 31, 2020, the DSE data show.
National Polymer started its business officially in June 1987 and now it is growing up successfully in multiple sectors.
The company is engaged in producing diversified products like uPVC, PP-R, CPVC pipes and fittings, PVC doors, Sheet, Ceiling also plastic household and furniture products.
