MoF sanctions Tk 150m to subscribe Padma Oil rights
Tuesday, 18 May 2010
FE Report
The Ministry of Finance (MoF) has approved an allocation of Tk. 150 million in favour of the Padma Oil Company to subscribe the right shares to be issued by the company soon.
The government owns more than 50 per cent shares of the Padma Oil that would issue one right share for one existing share having a face value of Tk. 10 each.
The decision of MoF has been conveyed to Ministry of Power, Energy and Mineral Resources last week. The letter said the allocation must be utilised by June next for the purpose.
The decision to issue right share of Padma has been taken in line with the government's efforts to increase the supply of securities of government -owned companies in the capital market, sources said.
Earlier, an inter ministerial meeting, held at the Securities and Exchange Commission, decided to increase the shares of Padma oil in the capital market. The meeting, presided over by Ziaul Haque Khondker, Chairman, Securities and Exchange Commission (SEC), proposed issuance of 1:1 right share of Padma Oil at face value. The meeting sought allocation of Tk 150 million to MoF as subscription money for right shares against government's holding, sources said.
Currently, the government owns 50.35 per cent share of Padma, institutions 31.34 per cent and general investors 18.31 per cent.
The Ministry of Finance (MoF) has approved an allocation of Tk. 150 million in favour of the Padma Oil Company to subscribe the right shares to be issued by the company soon.
The government owns more than 50 per cent shares of the Padma Oil that would issue one right share for one existing share having a face value of Tk. 10 each.
The decision of MoF has been conveyed to Ministry of Power, Energy and Mineral Resources last week. The letter said the allocation must be utilised by June next for the purpose.
The decision to issue right share of Padma has been taken in line with the government's efforts to increase the supply of securities of government -owned companies in the capital market, sources said.
Earlier, an inter ministerial meeting, held at the Securities and Exchange Commission, decided to increase the shares of Padma oil in the capital market. The meeting, presided over by Ziaul Haque Khondker, Chairman, Securities and Exchange Commission (SEC), proposed issuance of 1:1 right share of Padma Oil at face value. The meeting sought allocation of Tk 150 million to MoF as subscription money for right shares against government's holding, sources said.
Currently, the government owns 50.35 per cent share of Padma, institutions 31.34 per cent and general investors 18.31 per cent.