Usmania Glass plans to raise paid-up capital to Tk 30cr

Usmania Glass Sheet Factory – a pioneer in the country’s glass industry – is planning to increase its paid-up capital to Tk 30 from the exiting Tk 17.14 crore as per the regulatory requirement.

Its board of directors approved the increase in the paid up capital.

“The company and Bangladesh Chemical Industries Corporation (BCIC) have approved the decision to convert the debt of Tk 18.77 crore from BCIC into Share Capital for increasing minimum paid up capital Tk 30 crore to comply the requirement of Bangladesh Securities and Exchange Commission (BSEC),” said the company in a filing with the DSE on Sunday.

It also said that it also applied to the BSEC for approval of the paid up capital enhancement.

On December 11, 2021, the BSEC directed that the listed companies with a paid-up capital of more than Tk 20 crore must increase their capital to Tk 30 crore by June 30, 2022, and those with a capital of less than Tk 20 crore by December of the same year.

Initiatives have been taken to increase the paid up capital in compliance with BSEC conditions. We have no alternative approach to raising capital. An application has been made to the BSEC. They will approve it if they deem it reasonable, or suggest an alternative approach; the Company told the Business post on Sunday.

Earlier, the company planned to set up a new container glass plant at its factory premises with modern technology.

Usmania Glass Sheet Factory started its journey before the independence of Bangladesh in 1959 in Chattogram.

According to its financials, the company was a profitable entity in fiscal 2013-14 with a Tk 3.91 crore profit.

Since then, it incurred losses for eight years up to fiscal 2020-21.

The company has two plants for manufacturing glasses furnace-1, and 2 with the capacity of 2.01 crore sqft (2mm basis). Furnace-2 plant’s production capacity is 1.34 crore sqft.

In August last year, the furnace-2 plant resumed production with short cold repairing by local experts due to a fire accident.

Usmania Glass got listed on the capital market in 1987.

As of June, 30 this year, the sponsor-directors held 2%, the government 51%, institutional investors 14.10%, and general investors 32.90% shares of the company.

On the last trading session on Sunday, its share price was Tk76.40 each.