Sonali Paper rights shares subscription opens on 7 June
The subscription for the rights shares of Sonali Paper and Board Mills will open on 7 June and continue till 28 June.
The company has set the record date of the rights shares on 23 May this year.
On 20 April, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to issue rights shares at a ratio of 1R:2 (1 right share against 2 existing shares held) at Tk10 per share.
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The company will issue 1.1 crore ordinary shares at Tk10.1 crore and use this fund to purchase machinery.
The firm will not be able to raise its paid-up capital through stock dividends for the next five years.
The BSEC relaxed a rule relating to issuing the rights shares of the company to comply with the regulatory obligation to maintain a minimum paid-up capital of Tk30 crore.
As per the guidelines, a company cannot issue the rights shares within three years of listing on the main board of the stock exchanges and Sonali Paper got relisted on the bourses only one year ago.
Currently, the company's paid-up capital is Tk21.96 crore.
Earlier, the regulator appointed SH Khan & Co Chartered Accountants as a special auditor for the company to look into its assets that were revalued in 2016.
In July 2020, the company relisted on the main board of the stock exchanges taking exemption from the listing regulations.
In the July-December period of 2021, its operating income increased by 47% compared to the same period of the previous year.
The company has invested Tk45.37 crore in the capital market but its inventories are worth only Tk31.76 crore.
