Paramount Textile logs higher profits

Paramount Textile's shares fell yesterday despite reporting a higher profit in the first half of the financial year.

It made a profit of Tk 48 crore in the July to December period, against Tk 37 crore in the same period a year ago. As a result, earnings per share rose to Tk 2.97 from Tk 2.32.

The company's share, however, dropped 1.41 per cent to Tk 98.10 on the Dhaka Stock Exchange yesterday.

The textile company informed that its board of directors had decided to issue 15 crore fully redeemable, non-convertible, and cumulative preference shares to raise around Tk 150 crore, according to a regulatory filing posted on the website of the DSE.

It would be issued at face value of Tk 10 at par through private placement among potential investors. The proceeds will be used to finance the upcoming project expansion and to pay off a portion of high-cost short-term loan facilities.

The shares will be fully redeemable within five years. The dividend will be paid semi-annually on an arrear basis at a fixed rate, the disclosure added.