Paramount Textile to raise Tk630cr for capacity expansion, debt repayment
The decision was made at a board meeting held on Thursday, according to company sources
Paramount Textile, a listed concern of the Paramount Group, has announced plans to raise Tk630 crore through the issuance of a zero-coupon bond and preference shares to repay existing high-cost debt and enhance production capacity.
The decision was made at a board meeting held on Thursday, according to company sources.
Of the total amount, Paramount Textile plans to raise Tk330 crore by issuing a zero-coupon bond and Tk300 crore through preference shares, each with a face value of Tk10. The instruments will be offered via private placement to eligible investors.
The zero-coupon bond will be non-convertible, transferable, fully redeemable and unsecured. Meanwhile, the preference shares will be non-convertible and redeemable, offering a 12% annual dividend with semi-annual redemption over five years.
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Both long-term debt instruments are subject to approval from the Bangladesh Securities and Exchange Commission (BSEC).
Mohammad Jahidul Abedin, chief financial officer of Paramount Textile, told TBS that a portion of the raised capital will be used to retire high-interest debt, while the remaining funds will support the expansion of production facilities to meet rising demand.
Paramount Textile shares closed 0.49% higher at Tk41 on Thursday on the Dhaka Stock Exchange (DSE). In the last week, its shares jumped by over 7%.
As of March 2025, Paramount Textile reported long-term loans totalling Tk1,658 crore, and short-term borrowings of Tk663 crore from various banks, non-bank financial institutions, and foreign lenders.
In recent years, the company has invested Tk205 crore to expand its existing production capacity. Additionally, it previously diversified into the energy sector by investing in four power plants – Dynamic Sun Energy, Intraco Solar Power, Paramount Solar and Paramount Btrac Energy Ltd.
Among the power plants, Paramount Btrac Energy is currently non-operational following the expiry of their respective power purchase agreements.
Meanwhile, Paramount Textile has reported that its consolidated net profit jumped by 10% in the July-March period of 2024-25 fiscal year.
During the period, its net profit reached Tk96.40 crore, up from Tk87.50 crore recorded during the same period in the previous fiscal year.
At the end of the first nine months of FY25, its consolidated EPS increased to Tk5.22, which was Tk4.64 in the same period of the previous fiscal year.
In the first three quarters of FY25, it reported that the revenue jumped by 17% to Tk943.81 crore compared to the previous year at the same time.
In FY24, Paramount Textile made a profit of Tk107.77 crore with EPS of Tk6.62. It paid a 5% cash and 10% stock dividend to its shareholders.
