BSEC rejects Premier Cement’s Tk161cr preference share application
Its share closed 2.38% higher at Tk47.10 on Sunday
The Bangladesh Securities and Exchange Commission (BSEC) has rejected Premier Cement Mills PLC's application to issue preference shares worth Tk161 crore.
The commission rejected the application as the company's Memorandum of Association does not permit the issuance of preference shares, Premier Cement said in a disclosure filed on the Dhaka Stock Exchange (DSE) today (15 June).
Despite the development, its share price closed 2.38% higher at Tk47.10 today.
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In November last year, the company had decided to raise up to Tk161 crore by issuing 322 fully redeemable, non-convertible, non-participating cumulative preference shares at a face value of Tk50 lakh each, with a tenure of five years.
Earlier in 2022, Premier Cement issued 1,243 preference shares at a face value of Tk25 lakh each to raise Tk310 crore, aiming to repay high-interest loans and improve its financial indicators.
Preference shares are a type of company stock with dividends that are paid out to shareholders before any common stock dividends. In the event of bankruptcy, preferred stockholders are entitled to payment from the company's assets before common stockholders.
According to its unaudited financial statement for the July–March period of FY25, Premier Cement had Tk525 crore in long-term loans and Tk1,613 crore in short-term loans.
During the period, its revenue declined by 13% year-on-year to Tk1,785 crore, while net profit fell by 87% to Tk7.16 crore. Its earnings per share stood at Tk0.67 at the end of March this year, compared to Tk5.19 in the same period last year.
In FY24, the company paid a 21.50% cash dividend and posted a net profit of Tk74 crore.
