BSEC relaxes lock-in period of Intraco's converted shares

The securities regulator has reduced the lock-in period for the convertible shares of Intraco Refueling Station which will be converted from Intraco Refueling Convertible Bond.

The Bangladesh Securities and Exchange Commission (BSEC) has fixed a two-year lock-in period instead of three years of the company's converted shares from the bond which will be collected through private placement, and from the sponsors and directors.

Earlier, the company received the consent from the BSEC to issue a convertible bond worth Tk50 crore.

According to the BSEC, the other condition of the issuance bond is that the general investors' stake that converted from the bond will be lock-in free.

Where the fund will be used

The company will use this fund to set up five LPG auto gas stations, five mother-daughter CNG stations, three CNG filling stations, and 40% as working capital.

On 21 December last year, Intraco started supplying natural gas to different industries in Dhaka and adjoining areas from Bhola in CNG (compressed natural gas) form.

Company Secretary GM Salahuddin said Intraco will initially supply around 5 million cubic feet per day of gas to factories, particularly those in Gazipur and its adjoining areas, where piped-gas pressure remains low.

Industries will have to pay Tk47.60 for each unit of gas, whereas the current rate for industrial gas stands at Tk30 per unit. Intraco will receive Tk30.50 per unit for retailing the gas.

As per the contract, Intraco would be supplying 5mmcfd initially and then improve the capacity gradually to 25mmcfd.

The share price of the company closed at Tk41.10 on the Dhaka stock exchange on Sunday.

As of 30 November 2023, sponsors and directors jointly held 30.06%, institutions 14.63%, foreign 0.04%, and the general public 55.27% shares in the company.