BSEC rejects Magura Multiplex’s capital raising plea over non-compliance
Despite the rejection, Magura Multiplex’s share price jumped 8.88% today (24 August), closing at Tk114
The Bangladesh Securities and Exchange Commission (BSEC) has rejected a proposal by Magura Multiplex PLC to raise its paid-up capital to meet stock exchange listing requirements, citing several regulatory non-compliance issues.
According to a disclosure filed with the Dhaka Stock Exchange (DSE) yesterday, the company submitted an application to the regulator on 21 July this year to raise its paid-up capital from Tk29.60 crore to Tk30 crore.
The proposal sought to issue new shares worth Tk39 lakh to three of its sponsors in order to bridge the shortfall.
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The BSEC, however, declined the application, pointing out that the offer was not made to existing shareholders, no extra-ordinary general meeting (EGM) was held to seek general shareholders' approval, and a price sensitive information (PSI) notice was not disseminated before issuing new shares.
The regulator also observed that the proposed issuance price was set at face value, which was well below the prevailing market price. In addition, the company's audited financial statements contained "emphasis-of-matter" points, raising concerns about the financial disclosures, according to the disclosure.
Despite the rejection, Magura Multiplex's share price jumped 8.88% today (24 August), closing at Tk114.
In 2023, Magura Group merged its listed entities with non-listed companies in what it described as an effort to improve the health of its capital market presence.
Paper Processing and Packaging Limited, which had been listed on the DSE since 1990, was merged with non-listed Magura Paper Mills. The merged entity was later renamed Magura Multiplex PLC.
Paper Processing and Packaging was re-listed on the market in June 2021, and following the merger, Magura Multiplex has been operating under the new structure.
Financial performance
Magura Multiplex declared a 14% cash dividend for FY24 after its net profit rose by 51% to Tk7.45 crore compared to the previous year. In the first nine months of FY25, its earnings per share (EPS) jumped 42% year-on-year to Tk3.21, from Tk2.26.
As of July's shareholding report, the company's sponsors and directors held 45.81%, institutional investors 7.32%, and general shareholders 46.87%.
