SEC rejects rights issue proposal by HR Textile

The stock market regulator has rejected a proposal by HR Textile for issuing rights shares.
In October last year, the board of directors of the company declared 5 per cent cash and 10 per cent stock dividends for FY22.
It had a plan to increase paid-up capital by issuing rights shares also at a 1:1 ratio for an expansion of production facilities and repayment of high-priced loans taken from banks and financial institutions.
The company had sought permission for rights shares at an offer price of Tk 20 each, including a premium of Tk 10.
The regulator rejected the rights issue proposal but approved bonus shares to raise paid-up capital, according to a disclosure made on the DSE on Monday.
HR Textile is one of the 64 companies whom the Bangladesh Securities and Exchange Commission asked in December 2021 to raise their paid-up capital to Tk 300 million to remain on the main board of the bourse.
The company's paid-up capital stands at Tk 292.22 million after issuing 10 per cent bonus shares for FY22.
HR Textile, which was listed in the stock market in 1997, exports knit fabrics and garments to Canada as well as countries in Asia and the European Union.
Its profit after tax jumped 18 per cent to Tk 71 million in the nine months through March of FY23, compared to the same period a year before.
The stock, however, has been languishing at the floor price of Tk 115.90 since November last year.

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