The board of directors of Meghna Cement Mills has decided to issue fully redeemable non-convertible preference shares to its existing sponsor directors/directors, said an official disclosure on Monday.
Earlier on August 13, 2018, the company decided for issuance of fully redeemable preference shares of Tk 1.0 billion (100 million shares) only to raise its capital through private placement, subject to the approval of the shareholders and by the regulatory authorities.
The company on Monday said the board has further decided to issue 25,097,542 shares (out of earlier decided 100 million shares) fully redeemable non-convertible and non-listed preference shares of Tk 10 each to its existing sponsor directors/directors (excluding independent directors).
The company said the preference shares will be issued in compliance with regulatory directive as to maintain 30 per cent of the equity of this company held by its board of directors/sponsors.
According to a regulatory directive, sponsors, directors and promoters of a company listed with any stock exchange will have to jointly hold at least 30 per cent stake in the firm for all time.
And the 25,097,542 fully redeemable non-convertible and non-listed preference shares at Tk 10 each in total amounting to Tk 250,975,420 to be subscribed by the existing sponsor directors/directors (excluding independent directors) of the company through private placement.
Meghna Cement, which was listed on the Dhaka Stock Exchange (DSE) in 1995, disbursed 10 per cent stock dividend for the year ended on June 30, 2018.
Each share of the company closed at Tk 94.20 on Monday, remaining unchanged over the previous day.
In six months for July-December 2018, the company's earnings per share (EPS) stood at Tk 0.73 as against Tk 0.35 for July-December 2017.
Its net operating cash flow per share (NOCFPS) was minus Tk 22.43 for July-December 2018 as against minus Tk 7.05 for July-December 2017.
The net asset value (NAV) per share was Tk 35.58 as on December 31, 2018 and Tk 34.85 as on June 30, 2018.
The company's paid-up capital is Tk 247.50 million and authorised capital is Tk 5.0 billion, while the total number of securities is 24.75 million.
The sponsor-directors own 49.77 per cent stake in the company, while institutional investors own 32.77 per cent, and the general public 17.46 per cent as on February 28, 2019, the DSE data shows.
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