Paramount Textile to raise Tk 150cr via preference shares

Paramount Textile Limited, a subsidiary of Paramount Group, has decided to issue fully redeemable non-convertible cumulative preference shares to raise Tk 150 crore for a five-year tenure subject to the approval of the securities regulator. 

To raise the fund, it will issue 15 crore preference shares at a face value of Tk 10 each through private placement among the potential investors, said the company in a filing with the Dhaka Stock Exchange on Tuesday. 

Preference shares are shares of a company’s stock with dividends that are paid out to shareholders before common stock dividends are issued.

With the funds, Paramount Textile would finance the upcoming project expansion and pay off a portion of the high-cost short-term loan.

The share issue is subject to the approval of the Bangladesh Securities and Exchange Commission (BSEC) and an extraordinary general meeting (EGM) of the company.

The EGM will be held on March 12 through the digital platform. The record date for the EGM is set for February 16.

On Tuesday, its share fell 1.41 per cent to close at Tk 98.10 on the DSE.

For the fiscal year ending June 30, 2021, the company will pay a cash dividend of 20 per cent to general shareholders and a stock dividend of 5 per cent to all shareholders. The company reported earnings per share (EPS) of Tk 4.27 and a consolidated NAV per share of Tk 27.24 during the period.