BSEC declines Confidence Cement’s plea to reconsider rights issue

The Bangladesh Securities and Exchange Commission (BSEC) has turned down a request from Confidence Cement PLC to review its earlier rejection of the company's rights issue proposal.

Referring to a disclosure made earlier on 15 July 2025, the Dhaka Stock Exchange (DSE) said yesterday that the BSEC informed the company that there is no scope under the Securities and Exchange Commission (Rights Issue) Rules, 2006, to reconsider or review an application once rejected.

In June, the regulator had rejected Confidence Cement's application to raise Tk100 crore through a rights issue to support the rising investment needs of its associate company, Confidence Cement Dhaka Ltd. 

The Chattogram-based cement manufacturer, a concern of Confidence Group, initially planned to issue one rights share against three existing shares at Tk45 each, including a Tk35 premium. Later, amid a volatile and liquidity-strapped market, the company revised the offer by lowering the price by Tk10 per share.

Following the rejection, Confidence Cement has decided to divest its entire 50% stake in Confidence Cement Dhaka Ltd for Tk140.97 crore. The stake will be transferred to Confidence Power Holdings, another associate company of the group that operates four power plants with a combined capacity of 393.6MW.

According to its nine-month (July-March) financials for FY25, Confidence Cement posted Tk317.64 crore in consolidated revenue, nearly flat from the previous year. 

Despite a net profit of Tk83.36 crore before finance costs, losses from interest payments and foreign exchange impacts dragged the company into a Tk6.22 crore loss. However, its share of earnings from associate Confidence Power Holdings lifted its pre-tax profit to Tk88.17 crore.

In FY24, the company earned Tk75.33 crore, with an EPS of Tk8.73, and paid a 10% cash dividend to shareholders.

Its share closed 1.67% higher at Tk61 on the DSE yesterday.