Berger Paints to issue rights shares to raise Tk 302 crore

Berger Paints Bangladesh Ltd has received regulatory approval to issue rights shares to raise Tk 302 crore, aimed at financing part of its third factory in the National Special Economic Zone.

The company will raise the funds by issuing over 27.28 lakh ordinary shares at an issue price of Tk 1,110 per share, which includes a Tk 1,100 premium.

Under the approved plan, shareholders will receive one rights share for every 17 existing shares they hold, in accordance with a 1:17 ratio, according to the price-sensitive information Berger shared.

Berger Paints' stock was traded at Tk 1,774 today on the Dhaka Stock Exchange.

On January 24, 2024, the board of directors of Berger made the decision to issue the rights shares, which was subsequently endorsed at an extraordinary general meeting (EGM) held on March 10 of the same year. A revised issue price was later approved by shareholders at another EGM on January 25, 2025.

Meanwhile, J&N Investments (Asia) Ltd, which holds a 95 percent stake in Berger Paints Bangladesh, has opted to waive its entire entitlement of 25.91 lakh shares.

Of these, 21.82 lakh shares will be offered to other shareholders, while around 4.09 lakh shares will be allocated to employees.

This move is aimed at increasing the company's free-float shares to at least 10 percent, in compliance with BSEC directives issued in September 2021. Following the rights issue, the company expects its free-float to rise to approximately 10.28 percent.

Berger Paints said the capital raised will be used to partially fund the construction of its third production facility, marking another step in its ongoing expansion strategy.