GPH Ispat has proposed raising BDT 9.68 billion through a rights share issue, with the entire proceeds earmarked for loan repayment, as the steelmaker intends to ease its heavy loan burden accumulated to finance capacity expansion.
The company’s board has approved the issuance of nearly 968 million rights shares at BDT 10 each, offering two new shares for every one existing share, subject to approval from shareholders and regulatory authorities.
The proposed issue is more than twice the volume of the company’s existing shares — 483.88 million. If approved and fully subscribed, the number of outstanding shares would rise to around 1.45 billion, leading to significant earnings dilution for existing shareholders.
https://today.thefinancialexpress.com.bd/stock-corporate/squeezed-by-debt-burden-gph-ispat-makes-another-proposal-to-raise-equity-capital-1789317458