The Bangladesh Securities and Change Payment (BSEC) has suggested Berger Paints Bangladesh to put up a revised utility for its proposed moral fragment issuance, geared in the direction of increasing free-proceed with the proceed with the circulation shares to 10% from 5% in the secondary market.
In January, the paint producer had launched its notion to explain moral shares completely to overall shareholders and its eligible workers, excluding its sponsor-directors.
The corporate, earlier than unveiling its notion to the final public, had already bought an exemption from the stock market regulator in December 2023, after it utilized for it in August 2023.
The exemption modified into granted for the reason that notion to elongate free proceed with the proceed with the circulation shares in the market, as per a outdated BSEC record, wouldn’t possess succeeded if rights shares had been issued to all shareholders.
Nonetheless, after ten months, primarily the most contemporary commission has educated Berger Paints Bangladesh to reapply for the issuance of moral shares.
A letter outlining the advice has already been despatched to the corporate.
Khandker Abu Jafar Sadique, company secretary of Berger Paints confirmed to The Trade Customary that they bought the BSEC’s letter final week.
He mentioned that the commission has suggested submitting a revised utility, and the corporate will comply as per the advice.
In September 2021, the BSEC had ordered Walton Hi-Tech Industries, the Funding Corporation of Bangladesh (ICB), and Berger Paints Bangladesh to make certain 10% free proceed with the proceed with the circulation shares. Nonetheless, when these corporations went public, there modified into no requirement to retain a minimum of a one-tenth stake for public traders.
In December final 365 days, the ancient Shibli Rubayet Ul Islam-led commission exempted Berger from issuing rights shares to its sponsors, directors, and traders conserving 5% or more shares of the corporate.
Underneath the rights explain solutions, the rights shares of sponsors and directors of an organization are in most cases locked for 3 years. To facilitate elevated public shareholding, the BSEC exempted Berger from this rule.
The paint maker, in a letter, noteworthy that it had previously tried to conform with the 2021 regulatory record by selling 5% of its most contemporary shares held by sponsor-directors thru block transactions on the Dhaka and Chattogram stock exchanges.
Nonetheless, the trouble modified into unsuccessful attributable to insufficient inquire at the given market brand amid global economic uncertainty and unhappy market liquidity.
Berger subsequently explored alternative routes to make certain a minimum of 10% of its shares are on hand for overall traders.
Berger, which holds over half of the paint market fragment in Bangladesh and grew to turn staunch into a publicly traded company in 2006, consistently experiences huge earnings and affords beneficiant dividends to its shareholders.
Between April 2022 and September 2024, its revenue modified into Tk1,265 crore, and its profit stood at Tk153 crore. Final 365 days, the corporate paid a 500% money dividend to its shareholders.
The day prior to this, Berger’s shares, which possess a face price of Tk10, closed at Tk1,766.60 on the Dhaka Inventory Change, marking a 0.14% lower from the outdated session.
