GPH Ispat gets approval to raise Tk 262cr through rights shares
Bangladesh Securities and Exchange Commission yesterday approved GPH Ispat's application to raise Tk 262 crore by way of a rights issue.
Rights shares are issued to a company's existing shareholders that entitle them to buy additional shares directly from the company in proportion to their existing holdings within a fixed time period.
The Chittagong-based steelmaker listed on the stock exchange in 2012 will issue 18.71 crore rights shares of Tk 10 each in addition to Tk 4 as premium to its existing shareholders.
Three rights shares will be offered for an existing two.
LankaBangla Invest-ments and Banco Finance and Investment will be the issue managers. The raised fund will be used for business expansion, the stockmarket regulator said in a statement.
Last month, GPH Ispat disclosed that it would invest about Tk 1,700 crore for capacity expansion. Its yearly production capacity of MS billet will reach 10.08 lakh tonnes from existing 1.68 lakh tonnes.
In line with the expansion, the annual production of MS rods and medium-section products such as steel beam, angle, channel and flat bar will also increase by 6.40 lakh tonnes, in addition to the existing annual capacity of 1.20 lakh tonnes.
On the Dhaka Stock Exchange yesterday, each share of the company traded between Tk 43.6 and Tk 45.5, before closing at Tk 45.1. Sponsors hold 59.65 percent stakes in GPH Ispat, institutions 14.43 percent and general investors 25.92 percent.
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