Envoy Textiles to issue preference shares

Envoy Textiles has been given go-ahead by the Bangladesh Securities and Exchange Commission (BSEC) to issue fully redeemable non-convertible cumulative preference shares.

Through issuing the share, the textile maker would raise a fund of Tk 87 crore for five-year tenure.

It would be issued through private placement whose face value is Tk 10 and coupon rate is 7 to 7.5 per cent.

Preference shares are shares of a company's stock 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.

Preferred stock shareholders also typically do not hold any voting rights, but common shareholders usually do.

With the funds, Envoy Textiles would implement the balanced yarn project and repay bank loans.

The approval came from a meeting of the stock market regulator held at the BSEC office in Dhaka today.