C & A Textile will raise a capital worth Tk 500 million issuing new shares to the new management.
The company will raise the capital in line with a decision taken by its board of directors.
The company will issue the shares at a price of last one year weighted average share price of the C & A Textiles traded on the Dhaka Stock Exchange (DSE), said a disclosure posted on Wednesday.
It said the company will raise the capital in line with the Bangladesh Securities and Exchange Commission (Issue of Capital) Rules, 2001.
In October, 2021 the securities regulator has allowed Alif Group of Companies to acquire C&A Textiles subject to complying with seven conditions, including resuming production of the ailing company.
One of the conditions asks Alif Group to regularise the bank liabilities of the company to be acquired.
As per the Wednesday's disclosure, the board has also decided to deposit the required down payment to the bank to apply for rescheduling the total outstanding loan of C&A Textiles.
The company's board has approved Tk 50 million for ongoing repair and maintenance to make the factory ready for trial production.
"The board has also approved the existing shareholding directors of C&A Textiles Limited to ink a share sale/transfer agreement with the incoming management of C&A Textiles," said the disclosure.
Production at C&A Textiles, presently a 'Z' category company, remains suspended for the last five years and the BSEC restructured the company's board in March, 2021 to revamp the ailing company.
C&A Textiles was listed on the stock exchanges in 2015 and it failed to recommend any dividend after 2016.
The company's sponsor-directors hold 22.14 per cent shares, institutes 15.67 per cent and general public 62.19 per cent as on July 31, 2017.
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