Renata raised Tk325cr through preference shares  

Renata PLC, one of the leading drug makers in the country, has successfully concluded raising Tk325 crore capital through convertible preference shares to offset its high-cost loans.

The full subscription of the preference shares was completed on 19 October, following approval of the issuance by the Bangladesh Securities and Exchange Commission (BSEC) in July.

Fully Convertible Preference Shares are a type of preference shares that can be fully converted into common (equity) shares of a company after a specified period or upon meeting certain conditions.

According to the company, the preference shares have a six-year tenure, with conversion to Renata's equity starting at the end of the third year at a rate of 25% annually over the last four years at a fixed strike price of Tk475. 

The instrument will be listed on the Alternative Trading Board (ATB) as per the regulator's consent.

The majority of subscriptions were received electronically through the Dhaka Stock Exchange's (DSE) Electronic Subscription System (ESS) from existing shareholders, while a smaller portion was collected through private placement.

Out of its total fund of Tk325 crore – Tk303 crore was subscribed by 525 existing shareholders and the remaining Tk22 crore was subscribed through Private Placement.

City Bank Capital Resources Limited (CBCRL) served as the Issue Manager.

According to its third-quarter financial statement, Renata has taken around Tk1,900 crore loans – Tk1,224 crore short-term and Tk675 crore long-term – from several banks as of March 2025.

Its short-term loan was Tk1,083 crore in the same period of the previous year at the end of March 2024.