BSEC sets four-day average as floor price for RN Spinning and Far Chemicals
The publicly listed firms on the stock exchanges have amalgamated with two non-listed firms.
The Bangladesh Securities and Exchange Commission (BSEC) has finally set floor prices for RN Spinning and Far Chemicals Industries shares.
According to a directive by the BSEC on Monday, the floor price of RN Spinning Mills and Far Chemicals Industries shall be set at the average of the last four days' closing prices from 1 to 6 November.
Mohammad Rezaul Karim, Executive Director and spokesman of BSEC, told the Business Standard, 'To protect the interests of investors, the commission has decided to set a floor price for RN Spinning Mills and Far Chemicals.' He mentioned that the order will take immediate effect and remain in force until further notice.
Keep updated, follow The Business Standard's Google news channel
Both publicly listed firms on the stock exchanges have amalgamated with two non-listed firms. After the merger, the shareholders of both companies claimed fund erosion as there was no floor price for shares. FAR Chemical Industries merged with SF Textile Industries, and RN Spinning Mills merged with Samin Food & Beverage Industries and Textile Mills.
Due to the amalgamation, the existing paid-up capital of both listed firms has been reduced, resulting in a decrease in the number of shares. According to the merger scheme, the existing shareholders of RN Spinning Mills receive 1 new share in lieu of the existing 5.59 shares, and Samin Food and Beverage Industries and Textile Mills shareholders receive 1 share of R.N Spinning Mills, who hold 1 share at Samin Food.
After the merger, the share price of RN Spinning Mills on the Dhaka Stock Exchange (DSE) was set at Tk23.2 each on the opening day of the record date. On the other hand, the existing shareholders received 1 new share of Far Chemicals Industries in lieu of 3 existing shares held in Far Chemicals. Meanwhile, the SF Textile Industries shareholders received 1 share of Far Chemicals for the existing 1.96 shares.
Following the merger, RN Spinning Mills' paid-up capital declined to Tk303.45 crore from Tk625.73 crore, and Far Chemicals' paid-up capital declined to Tk153.09 crore from Tk375.78 crore.
