National Tea plans to raise paid-up capital by issuing right shares
Its shares were last traded at Tk827 each on Sunday at the DSE
The publicly-listed National Tea Company wants to increase its paid-up capital by issuing the right shares to comply with the regulatory requirements.
The tea manufacturer has recently sought approval from the Bangladesh Securities and Exchange Commission (BSEC) to this end.
Incorporated in 1978 and listed on the stock market in 1979, National Tea Company Limited carries on the business of plantation, cultivation, manufacturing, and selling of tea and rubber in Bangladesh.
Keep updated, follow The Business Standard's Google news channel
The annual average production of the company is about 5.2 million kg and its major portion is sold through the Chattogram auction market.
In 2000, National Tea started selling tea at the local market on a small scale through its dealers. It has a sales centre at its registered office, which is open for all consumers.
There are about 12,500 permanent labourers in the company's 12 tea estates. Most of them are from ethnic groups. They stay in the gardens with their dependents.
The company has been generating profits from 2000 to 2019. But the state-owned firm suffered losses for the last two years due to the Covid-19 pandemic.
In the July-December period of 2021, the net profit of the company was Tk5.72 crore, up from Tk1.59 crore a year earlier.
In this situation, the company will be able to increase its paid-up capital by issuing rights shares if the stock market regulator provides legal exemptions for the company.
The company will take the next decision after getting approval from the stock market regulator.
Sheikh Kabir Hossain, chairman and independent director of the company, said, the tea cultivating company may get the waivers as a state-owned enterprise.
"I think the company should get more facilities like the agriculture sector as it is engaged in the plantation, cultivation, manufacturing, and selling of tea," he added.
Earlier, Padma Bank Chairman Chowdhury Nafeez Sarafat joined the board of the company as a shareholding director.
According to the shareholding report as of 31 December 2021, Finex Software Ltd bought 2.1% shares of the company and nominated Nafeez to its board. He attended the last board meeting.
As of 30 June 2021, the short-term loan of the company was Tk137.18 crore, while the long-term loan was Tk63.32 crore.
As of 31 January 2022, sponsors and directors jointly held 48.60%, the government 4.33%, institutions 8.55%, and the general public 38.52% shares of the company.
The last trading share price of the company on the Dhaka Stock Exchange was Tk827 per share on Sunday.
