Titas Gas gets BSEC nod to issue Tk282cr preference shares
Titas Gas said the proposal was unanimously approved by shareholders at its 5th Extraordinary General Meeting (EGM) held on 24 December 2025.
The Bangladesh Securities and Exchange Commission has approved a proposal by state-owned Titas Gas Transmission and Distribution Company Limited to issue irredeemable, non-cumulative preference shares worth approximately Tk282.75 crore.
According to a disclosure on the Dhaka Stock Exchange today (20 April), Titas Gas will issue 282,747,469 preference shares at a face value and issue price of Tk10 each, amounting to Tk2,827,474,690. The shares will be issued in favour of the Finance Division of the Ministry of Finance.
Today, the company's share price closed at Tk17 on the DSE.
Titas Gas said the proposal was unanimously approved by shareholders at its 5th Extraordinary General Meeting (EGM) held on 24 December 2025. It was later submitted to the regulator, which granted approval on 15 April 2026.
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The move aims to align the company's capital structure with equity support provided by the government. According to Titas, the government had injected a total of Tk282.75 crore into the company as equity up to 30 June 2023, which will now be formally converted into share capital through the issuance.
A committee comprising officials from the finance ministry, Titas Gas, and the Financial Reporting Council (FRC) had earlier, at a meeting on 16 April 2023, decided to issue irredeemable non-cumulative preference shares in favour of the government.
The structure is intended to offer flexibility to the financially strained company.
Under the proposed terms, the government will receive dividends on the preference shares when the company records profits, but no dividends will be paid in years when it incurs losses.
The irredeemable preference shares will remain on the company's books permanently without increasing its paid-up or common share capital, while their non-cumulative nature means Titas will not be required to pay any unpaid dividends from previous years to the government.
Unlike ordinary shares, preference shares do not confer ownership. Instead, they give holders priority over common shareholders in receiving dividends and claims in the event of liquidation. The committee has also set guidelines governing the issuance of such shares and dividend payments.
Financial performance
Titas Gas reported a narrowing of losses in the July-December period, supported by higher operational income and a lower tax deduction rate, which reduced its overall tax burden.
Total revenue rose to Tk19,072 crore during the period, up from Tk17,473 crore a year earlier. Despite the increase, the company posted a loss of Tk390.32 crore, significantly lower than the Tk711.44 crore loss recorded in the corresponding period.
Meanwhile, net operating cash flow per share (NOCFPS) stood at Tk6.07 at the end of December 2025, mainly due to higher payments for gas purchases compared with collections from gas sales.
The government currently holds 75% of Titas Gas's ordinary shares. Institutional investors own 14.95%, while foreign investors hold 0.03% and general investors 10.02%.
On 2 March 2020, the Financial Reporting Council directed that any capital received as share money deposit – included under equity but not refundable – must be converted into share capital within six months of receipt. Such amounts are also to be considered in the calculation of earnings per share.
