Govt urged to raise BSRS paid-up capital to Tk 1.0b
Thursday, 4 October 2007
Refayet Ullah Mirdha
The three-member committee, formed to offload shares of state-owned Bangladesh Shilpa Rin Sangstha (BSRS), has recommended the government to raise its paid-up capital from the reserve fund before listing on the stock exchanges.
Earlier, the committee comprising Investment Corporation of Bangladesh (ICB) managing director Ziaul Haque Khandaker, BSRS managing director FRM Hafizul Islam and deputy secretary of the finance ministry M Kamrunnahar submitted the recommendations to the finance ministry September 22 last.
Talking to the FE, Hafizul Islam said currently, the committee suggested the government to increase the total paid-up capital of the BSRS to Tk 1.0 billion from Tk 700 million.
At least 49 per cent share of the total amount of Tk 1.0 billion might be offloaded through stock market for the public, he said adding a portion of the remaining 51 per cent share can be given to some government organisations, including public banks.
He said a portion of reserved fund of the BSRS worth Tk 1.80 billion has been proposed to be converted into paid-up capital.
The face value of the share might be fixed at Tk 100.00 or Tk 1000.00, he said adding it depends on the government's decision, but both options have been made in the recommendations.
He said currently, the total amount of loan disbursed by the BSRS to the industrial sector as a whole is Tk 2.10 billion.
In the last fiscal, the BSRS's recovery of loan was Tk 320 million, he said.
Hafizul Islam said in the current fiscal, they have a target to recover Tk 500 million.
The BSRS chief said this specialised lending agency of the government has written off Tk 1.30 billion worth of bad debt recently.
The committee recommended the ministry for taking measures to offload the BSRS shares through direct listing method to save time, sources said.
Hafizul Islam said if everything goes normal, the BSRS share might come into the market by December next.
Talking to the FE Ziaul Haque Khandaker, also the chief of the three-member committee, said the ministry concerned has agreed in principle to offload the shares of the BSRS as soon as possible.
The three-member committee, formed to offload shares of state-owned Bangladesh Shilpa Rin Sangstha (BSRS), has recommended the government to raise its paid-up capital from the reserve fund before listing on the stock exchanges.
Earlier, the committee comprising Investment Corporation of Bangladesh (ICB) managing director Ziaul Haque Khandaker, BSRS managing director FRM Hafizul Islam and deputy secretary of the finance ministry M Kamrunnahar submitted the recommendations to the finance ministry September 22 last.
Talking to the FE, Hafizul Islam said currently, the committee suggested the government to increase the total paid-up capital of the BSRS to Tk 1.0 billion from Tk 700 million.
At least 49 per cent share of the total amount of Tk 1.0 billion might be offloaded through stock market for the public, he said adding a portion of the remaining 51 per cent share can be given to some government organisations, including public banks.
He said a portion of reserved fund of the BSRS worth Tk 1.80 billion has been proposed to be converted into paid-up capital.
The face value of the share might be fixed at Tk 100.00 or Tk 1000.00, he said adding it depends on the government's decision, but both options have been made in the recommendations.
He said currently, the total amount of loan disbursed by the BSRS to the industrial sector as a whole is Tk 2.10 billion.
In the last fiscal, the BSRS's recovery of loan was Tk 320 million, he said.
Hafizul Islam said in the current fiscal, they have a target to recover Tk 500 million.
The BSRS chief said this specialised lending agency of the government has written off Tk 1.30 billion worth of bad debt recently.
The committee recommended the ministry for taking measures to offload the BSRS shares through direct listing method to save time, sources said.
Hafizul Islam said if everything goes normal, the BSRS share might come into the market by December next.
Talking to the FE Ziaul Haque Khandaker, also the chief of the three-member committee, said the ministry concerned has agreed in principle to offload the shares of the BSRS as soon as possible.