- Dhaka
Berger Paints Bangladesh Ltd has received regulatory approval to issue rights shares to raise Tk 302 crore, aimed at partially financing its third factory in the National Special Economic Zone.
Through this move, the company expects its free-float shareholding to rise to 10.28%.
The funds will be raised by issuing over 27.28 lakh ordinary shares at an issue price of Tk 1,110 per share, which includes a premium of Tk 1,100.
Under the approved plan, shareholders will receive one rights share for every 17 existing shares they hold, in line with a 1:17 ratio, according to the company’s price-sensitive disclosure.
Berger Paints' stock was traded at Tk 1,774 on the Dhaka Stock Exchange today.
The board of directors initially made the decision to issue the rights shares on January 24, 2024, which was later endorsed at an extraordinary general meeting (EGM) held on March 10 the same year. A revised issue price was subsequently approved by shareholders at another EGM on January 25, 2025.
Meanwhile, J&N Investments (Asia) Ltd, which owns 95 percent of Berger Paints Bangladesh, has waived its entire entitlement of 25.91 lakh shares.
Out of these, 21.82 lakh shares will be offered to other shareholders, while approximately 4.09 lakh shares will be allocated to employees.
The initiative is intended to bring the company’s free-float shares to at least 10 percent, in line with the BSEC directives issued in September 2021. Following the rights issue, the free-float is expected to reach around 10.28 percent.
Berger Paints stated that the capital raised will be used to partially fund the construction of its third production facility, as part of its ongoing expansion strategy.
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