Application for right shares of Sonali Paper starts on June 7
BI Report || BusinessInsider
Sonali Paper and Board Mills Limited logo
The application for the right shares of Sonali Paper and Board Mills Limited will start on June 7 and will continue until June 28.
According to DSE officials, the record date for the company’s right shares issuance has been set for May 23.
Earlier, on April 20, the capital market regulator, Bangladesh Securities and Exchange Commission (BSEC), approved the issuance of right shares of Sonali Paper.
According to the BSEC, Sonali Paper will issue right shares in the ratio of 1R: 2, meaning that investors will get one right share as against the existing two shares.
The company will raise Tk 10,98,17,290 through issuance of 1,09,81,729 right shares at a face value of Tk 10.
The company will purchase capital machinery using the money raised through issuance of right shares.
However, as per the conditions given by BSEC, the company will not be able to issue any bonus shares for the next five years.
On the other hand, shares of the company’s entrepreneurs and directors will have a 3-year lock-in, meaning that at this time they will not be able to sell any shares or keep collateral.
