Home ›› 07 Sep 2022 ›› Stock
National Tea Company (NTC) has decided to increase its paid-up capital for expanding business.
The paid-up capital will be raised to Tk 30 crore from Tk 6.60 crore through the private placement, said the company in a filing with the Dhaka Stock Exchange on Tuesday.
The board also decided to increase authorized capital from Tk 25.00 crore to Tk 40 crore, it said.
From the shareholder’s approval, the company will hold EGM on October 20 and the record date is September 26.
“After issuance of proposed shares, the government, Investment Corporation of Bangladesh and Shadharon Bima Corporation will hold 51 per cent of paid-up capital and the remaining 49 per cent shares will be distributed among existing other directors and shareholders proportionately,” it said.
“The company also decided to pay a bank loan of the company, generating working capital and development of the tea garden and factories with the raised money from issuance of proposed shares.”
Incorporated in 1978 and listed on the stock exchange in 1979, NTC engages in the plantation, cultivation, manufacturing, and sale of tea and rubber in Bangladesh.
The company’s short-term loan was Tk 137 crore as of 30 June 2021, while its long-term loan was Tk 63 crore, according to its annual report.
In the July-March period of 2022, the net loss of the company was Tk 20.5 crore, down from Tk 21.06 crore a year earlier.
The company’s revenue during the period was Tk 92.24 crore, up from Tk 85.69 crore during the same period last year.
In addition, the company’s production cost increased by 4 per cent over the previous year.
Padma Bank Chairman Chowdhury Nafeez Sarafat joined the company’s board of directors as a shareholding director.
As of July 31, 2022, sponsors and directors jointly held 48.60 per cent of the company’s shares, the government 4.33 per cent, institutions 8.55 per cent, and the general public 38.52 per cent.
On Tuesday, the company’s last trading share price on the Dhaka Stock Exchange was Tk 752.20 per share.
