Berger now eyes fresh shares for public shareholders | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Wednesday
June 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
WEDNESDAY, JUNE 11, 2025
Berger now eyes fresh shares for public shareholders

Stocks

Rafiqul Islam & Salah Uddin Mahmud
02 September, 2023, 10:05 pm
Last modified: 03 September, 2023, 01:01 pm

Related News

  • Impunity plagues capital market: Debapriya
  • Sheltech Group and Berger Paints sign strategic partnership
  • Indices continue upward momentum for four consecutive days
  • Square Pharma pulls Ctg bourse to post record turnover
  • Stocks plunge as budget measures frustrate investors

Berger now eyes fresh shares for public shareholders

Rafiqul Islam & Salah Uddin Mahmud
02 September, 2023, 10:05 pm
Last modified: 03 September, 2023, 01:01 pm

Berger Paints Bangladesh now considers issuing fresh shares to increase public shareholding by 5% to maintain regulatory requirements of a minimum of 10%.

In a letter to the Bangladesh Securities and Exchange Commission (BSEC) earlier this month, the company requested a regulatory exemption to issue right shares among public shareholders, excluding sponsor-directors.

The letter, which was seen by The Business Standard, also sought approval from the market regulator to allocate 15% of the intended new shares for its employees.

The paint maker had previously tried to comply with the 2021 regulatory order by selling 5% of its current shares held by its sponsor-directors through block transactions on the Dhaka and Chattogram stock exchanges.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

However, the effort was not successful because of insufficient demand at the given market price amid the uncertain global economic situation and poor market liquidity, Berger wrote.

The publicly traded multinational company, which dominates the Bangladesh paint market, is now exploring alternative ways to ensure that at least 10% of its shares are available for public investors.

Usually, companies opt for a repeat public offering (RPO), a method for listed firms to raise capital by issuing fresh shares, but it appeared to be inconvenient for Berger.

The public issue rules have no provision to prioritise selling new shares to existing shareholders, which would not guarantee the minimum free-float intended.

Besides, the price determination of fresh shares through RPO bidding will not ensure a specific percentage of dilution needed to comply with the regulatory order for 10% free-float shares.

Issuing fresh shares only to the general public is the way the company proposed to the BSEC.

New shares only for existing public shareholders: Private placement or right shares?

Private placement among existing public shareholders was an option, which was not preferred by the company as it had found problems there.

If any of the existing eligible investors do not participate in subscribing for new shares in a private placement, the intent to increase their stake in the company would not be achieved because there is no provision in the relevant rules for the underwriting of the unsold shares.

On the other hand, right-issue rules ask for a proportionate allocation of new shares among all existing shareholders.

If the regulator exempts Berger from this obligation, the company can offer shares to existing public shareholders so that only their stake in the company goes up.

Also, if any existing public shareholder skips subscription, the unsold shares could be sold to others as there is provision for underwriting.

Rupali Chowdhury declined to comment on the matter.  

Two BSEC officials told TBS they got the letter from the company and were analysing the proposals.

"After an analysis, the commission will make decisions keeping shareholders' interests in mind," said one of the officials.

In September 2021, the BSEC ordered Walton Hi-Tech Industries, Investment Corporation of Bangladesh (ICB), and Berger Paints Bangladesh to ensure 10% free-float shares.

When the companies went public, it was not mandatory to maintain at least a one-tenth stake for public investors.

Currently, Walton has 1%, ICB 3.51%, and Berger 5% of free-float shares.

In May last year, Walton was granted a three-year period to offload additional shares held by its sponsors to ensure at least 10% free-float shares.

Berger, which holds over half of the paint market share in the country and became a publicly traded company in 2006, consistently reports substantial profits each year and also provides generous dividends to its shareholders.

From April 2022 to March 2023, its annual revenue was Tk2,555 crore and its profit was Tk292 crore.

Berger shares, which have a face value of Tk10, closed at Tk1858.70 apiece on the Dhaka Stock Exchange on Thursday.

Top News

Berger / Bangladesh Stock Market

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    CA Yunus outlines challenges, opportunities facing Bangladesh at Chatham House
  • File Photo: TBS
    DGHS issues 11-point directive to prevent spread of Covid-19 in Bangladesh
  • A man in a car uses his mobile phone as members of law enfocement stand guard on a road after curfew, as protests against federal immigration sweeps continue, in downtown Los Angeles, California, US June 10, 2025. REUTERS/Leah Millis
    Trump wants to 'liberate' Los Angeles, residents say 'no thanks'

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • Screengrab from video shows a group of local youths forcing tourists to leave a tourist spot in Utmachhra area of Sylhet's Companiganj on Sunday, 8 June 2025, citing allegations of obscene activities and environmental damage
    Locals declare tourist spot in Sylhet 'closed', force visitors to leave
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook
  • Photo shows the Land Cruiser Prado car belonging to former member of parliament (MP) Anwarul Azim Anar found in Kushtia. Photo: TBS
    Luxury car of ex-AL MP Anar, who was killed in Kolkata, found in Kushtia

Related News

  • Impunity plagues capital market: Debapriya
  • Sheltech Group and Berger Paints sign strategic partnership
  • Indices continue upward momentum for four consecutive days
  • Square Pharma pulls Ctg bourse to post record turnover
  • Stocks plunge as budget measures frustrate investors

Features

Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

20h | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh
Illustration: TBS

Unbearable weight of the white coat: The mental health crisis in our medical colleges

6d | Panorama

More Videos from TBS

US-China London meeting ends as planned

US-China London meeting ends as planned

25m | TBS World
When will the heat wave subside?

When will the heat wave subside?

50m | TBS Today
Covid-19 testing to resume at hospitals amid rising infections

Covid-19 testing to resume at hospitals amid rising infections

2h | TBS Today
Curfew ordered in downtown Los Angeles after looting and vandalism

Curfew ordered in downtown Los Angeles after looting and vandalism

3h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net