National Tea stock soars 8.74% after adjusting placement shares
The share price of the publicly-listed National Tea Company rose by 8.74% to Tk251.3 per share after its adjustment of placement shares on Wednesday.
The record date for entitlement of placement shares was on 15 May 2023. But on 16 May, the stock exchanges cancelled the share trading of the company for that session due to a failed adjustment of its shares.
On Tuesday, the closing price of the company's shares was Tk626.50 and its adjusted opening price was Tk231.1 each.
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On Wednesday, the closing price of the company stood at Tk251.30, which is 8.74% higher than the previous day. Only 31 shares were traded on the stock exchanges in the session.
Investors will be able to subscribe for the company's shares from 10 July till 10 September 2023 during banking hours.
ICB Capital Management Limited is working as the issue manager of the placement shares while Padma Bank and Investment Corporation of Bangladesh are the bankers to the issue.
Earlier, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to issue new shares, enabling it to increase paid-up capital.
The company will issue 2.34 crore ordinary shares through private placements among its existing shareholders.
The stock market regulator allowed the company to issue the shares at Tk119.53 apiece – Tk10 face value and Tk109.53 premium – which means, the total fund to be raised is Tk279.7 crore.
Sources at the commission said the BSEC has given its consent on this matter as per the (Issue of Capital) Rules, 2001.
The company wants to raise funds for working capital, field, and factory development, and repayment of bank loans.
In September last year, the company announced that it wants to issue new shares at Tk118 each – Tk10 face value and Tk108 premium – for raising paid-up capital, and make its general shareholders eligible to receive three newly issued shares against each that they currently hold.
Currently, the government, the Investment Corporation of Bangladesh, and the Sadharan Bima Corporation hold 42.72% shares of the company, which will be increased to 51% through private placements. The remaining newly-issued shares will be allotted to the existing directors and general shareholders. Three directors of National Tea hold 10% of its shares.
At present, the company's paid-up capital is Tk6.6 crore, and the authorised capital is Tk25 crore. It wants to increase its paid-up capital in order to meet the regulatory requirements.
