National Tea falls short on BSEC’s Tk30cr paid-up capital target

After nearly four years of efforts, state-owned National Tea Company Limited has finally completed the process of increasing its paid-up capital, but still failed to meet the Tk30 crore target set by the securities regulator.

Infographics: TBS

According to a disclosure published by the Dhaka Stock Exchange (DSE) today (7 October), the company's total paid-up capital now stands at Tk29.75 crore, around Tk25 lakh short of the target fixed by the Bangladesh Securities and Exchange Commission (BSEC).

On the same day, National Tea's share price dropped 0.80% to close at Tk172.90 on the DSE.

On 13 April 2023, the BSEC granted a consent letter to National Tea to raise its capital by issuing 2.34 crore ordinary shares. However, the approval period was extended several times as the company struggled to complete the issuance.

Finally, in line with a decision taken at its 690th board meeting on 28 September 2025, the company credited an additional 1.87 crore ordinary shares on 30 September. Earlier, it had credited 44.46 lakh placement shares on 2 October 2024.

With these additions, National Tea's total number of shares now stands at 2.975 crore, compared to its target of 3 crore shares.

The breakdown of its current paid-up capital structure is as follows: previously issued and paid-up shares – 66 lakh, placement shares credited on 2 October 2024 – 44.46 lakh, and placement shares credited on 30 September 2025 – 1.87 crore, bringing the total to 2,97,50,000 shares.

The company had earlier announced plans to sell the remaining 2.5 lakh shares, but the move was not approved due to legal complications. As a result, those shares remain unsold.

Tk279.7cr capital plan

Under the 2023 BSEC consent, National Tea aimed to raise Tk279.7 crore by issuing shares at Tk119.53 each, including a Tk109.53 premium per share.

According to the allocation plan, the government, Investment Corporation of Bangladesh (ICB), and Sadharan Bima Corporation were to receive 1.24 crore shares at a ratio of 4.43 shares per existing share. 

Sponsors and directors were entitled to 13.8 lakh shares at a ratio of 3.21 shares, while general shareholders were allocated 95.39 lakh shares at a ratio of 2.85 shares for each existing share.

At the time of approval, the company's paid-up capital was Tk6.6 crore, and its authorised capital stood at Tk25 crore. The initiative was intended to meet the BSEC's regulatory capital requirement.

Provident fund arrears

Meanwhile, the company owes Tk18.37 crore in unpaid workers' provident fund (PF) contributions across its 12 tea estates. 

The Tea Garden Workers' Provident Fund Office has already served a notice demanding immediate payment and warned that legal action would be taken if the dues are not cleared soon.

Sources at the fund office said the company has failed to deposit workers' PF contributions, the employer's matching share, and the 5% administrative charge for the last 23 months.

Funds in the provident account are typically disbursed to workers or their nominees upon retirement, death, disability, or voluntary retirement, and are invested in government-backed savings instruments or fixed deposits with scheduled banks.

Except for apprentice workers, all employees with over one year of service qualify for PF membership. Tea estate management submits their information to the fund office, which verifies the eligibility through inspections.

In FY24, National Tea did not recommend any dividend for shareholders. The company reported a loss per share of Tk107.49, while its net asset value per share stood at Tk155.69 negative.

Founded in 1978 and listed on the stock market the following year, National Tea Company cultivates, manufactures, and sells tea and rubber in the domestic market. 

It produces an annual average of around 52 lakh kilogrammes of tea, most of which is sold through the Chattogram auction market.