Paramount Textile to offload preference shares

Paramount Textile, a listed textile company, has got regulatory approval to offload preference shares to raise a fund of Tk 150 crore.

Preference shares are a company's stocks with dividends that are paid out to shareholders before common stock dividends are issued.

Most preference shares have a fixed dividend, while common stocks generally do not.

Each unit of it would be Tk 10 and its tenure is five years.

Dividend of the preference share is 7 to 8.5 per cent, according to a statement of the Bangladesh Securities and Exchange Commission released today after a commission meeting.

With the raised fund, the textile maker would repay bank loans and expand its business.

NDB Capital is the arranger of the issue.