The board of directors of National Polymer Industries Ltd has recommended 22 per cent stock dividend for the year ended on June 30, 2019.
It has also recommended raising of paid up capital through issuance of rights share at a ratio of 1R:1 (1 rights share for every 1 shares held) at Tk 20 each including premium of Tk 10 per share after considering 22 per cent stock dividend for the year ended on June 30, 2019.
Rights issue is subject to approval of shareholders in the EGM, BSEC and complying with the requirements embodied in relevant laws and regulatory authorities concerned.
Purpose of rights issues is to cope with the business growth, strengthen the capital base of the company along with repayment of bank loan and land purchase.
The board has also recommended that the authorised capital will be increased to Tk 3.0 billion from existing Tk 500 million and amendment of Clause-V of the Memorandum of Association and Clause-5 of the Articles of Association, subject to approval of shareholders in the ensuing EGM.
The annual general meeting (AGM) will be held on October 15 in Gazipur. The record date of AGM and EGM is September 22.
The company has also reported EPS of Tk. 4.25, NAV per share of Tk. 38.98 and NOCFPS of Tk. 0.22 for the year ended on June 30, 2019 as against Tk. 2.65 (restated), Tk. 35.51 (restated) and Tk. 7.79 (restated) respectively for the same period of the previous year.
Another record date for entitlement of the proposed rights shares will be notified later after obtaining approval from BSEC.
The company also informed that retained amount of bonus shares will be used as capital for further investment, bonus shares is declared out of accumulated profit and bonus shares is not declared from capital Reserve or revaluation reserve or any unrealised gain or out of profit earned prior to incorporation of the company or through reducing paid up capital or through doing anything so that the post dividend retained earnings become negative or a debit balance.
In 2018, the company also disbursed 22 per cent stock dividend.
There will be no price limit on the trading of the shares of the company today (Sunday) following its corporate declaration.
Each share of the company, which was listed on the Dhaka bourse in 1993, closed at Tk 112 on Thursday last at the Dhaka Stock Exchange (DSE).
The company’s paid-up capital is Tk 299.11 million and authorised capital is Tk 500 million while the total number of securities is 29.91 million.
The sponsor-directors own 45.43 per cent stake in the company, while the institutional investors own 8.32 per cent and the general public 46.25 per cent as on July 2019, the DSE data shows.
