Stock Market

Berger Paints Bangladesh Ltd has received regulatory approval to issue rights shares to raise Tk 302 crore, aimed at financing part of its third factory in the National Special Economic Zone.

The company will raise the funds by issuing over 27.28 lakh ordinary shares at an issue price of Tk 1,110 per share, which includes a Tk 1,100 premium.

Under the approved plan, shareholders will receive one rights share for every 17 existing shares they hold, in accordance with a 1:17 ratio, according to the price-sensitive information Berger shared.

Berger Paints’ stock was traded at Tk 1,774 today on the Dhaka Stock Exchange.

On January 24, 2024, the board of directors of Berger made the decision to issue the rights shares, which was subsequently endorsed at an extraordinary general meeting (EGM) held on March 10 of the same year. A revised issue price was later approved by shareholders at another EGM on January 25, 2025.

Meanwhile, J&N Investments (Asia) Ltd, which holds a 95 percent stake in Berger Paints Bangladesh, has opted to waive its entire entitlement of 25.91 lakh shares.

Of these, 21.82 lakh shares will be offered to other shareholders, while around 4.09 lakh shares will be allocated to employees.

This move is aimed at increasing the company’s free-float shares to at least 10 percent, in compliance with BSEC directives issued in September 2021. Following the rights issue, the company expects its free-float to rise to approximately 10.28 percent.

Berger Paints said the capital raised will be used to partially fund the construction of its third production facility, marking another step in its ongoing expansion strategy.

https://www.thedailystar.net/business/news/berger-paints-issue-rights-shares-raise-tk-302-crore-3904851

শেয়ারবাজারে সুশাসন নিশ্চিত করতে এবং বিনিয়োগকারীদের স্বার্থ রক্ষায় আরও এক গুরুত্বপূর্ণ পদক্ষেপ নিয়েছে নিয়ন্ত্রক সংস্থা বাংলাদেশ সিকিউরিটিজ অ্যান্ড এক্সচেঞ্জ কমিশন (বিএসইসি)। এবার জেড ক্যাটাগরিভুক্ত কোম্পানি এবং যেসব কোম্পানির উদ্যোক্তা-পরিচালকরা সম্মিলিতভাবে ন্যূনতম ৩০ শতাংশ শেয়ার ধারণে ব্যর্থ হয়েছে, সেসব প্রতিষ্ঠানে ‘স্বতন্ত্র পরিচালক’ নিয়োগ বাধ্যতামূলক করার সিদ্ধান্ত নিয়েছে কমিশন।

মঙ্গলবার (২৭ মে) অনুষ্ঠিত বিএসইসির ৯৫৬তম কমিশন সভায় এই সিদ্ধান্ত গৃহীত হয়। সভায় সভাপতিত্ব করেন বিএসইসির চেয়ারম্যান খন্দকার রাশেদ মাকসুদ। সভা-পরবর্তী এক সংবাদ বিজ্ঞপ্তিতে বিএসইসির পরিচালক ও মুখপাত্র আবুল কালাম বিষয়টি নিশ্চিত করেন।

বিজ্ঞপ্তিতে জানানো হয়, কর্পোরেট গভার্নেন্স কোড, ২০১৮ অনুসরণ করে এসব কোম্পানিতে স্বতন্ত্র পরিচালক নিয়োগ দিতে হবে। কমিশনের মতে, এই উদ্যোগ কোম্পানিগুলোর পরিচালনা ব্যবস্থায় পেশাদারিত্ব ও জবাবদিহিতা বৃদ্ধি করবে, যা দীর্ঘ মেয়াদে বাজারে স্থিতিশীলতা এবং বিনিয়োগকারীদের আস্থা বৃদ্ধিতে সহায়ক হবে।

বিএসইসির ভাষ্য অনুযায়ী, অনেক কোম্পানি দীর্ঘদিন ধরে তালিকাভুক্ত থাকলেও তারা কার্যকরভাবে ব্যবসা পরিচালনা করছে না এবং বিনিয়োগকারীদের জন্য আর্থিক ক্ষতির কারণ হয়ে উঠেছে। অনেক উদ্যোক্তা ও পরিচালকদের শেয়ারধারণের ন্যূনতম শর্ত মানার ক্ষেত্রে অবহেলা রয়েছে, যার ফলে কোম্পানির স্বার্থ ও শেয়ারহোল্ডারদের নিরাপত্তা ক্ষতিগ্রস্ত হচ্ছে। এই প্রেক্ষাপটে, কমিশনের নতুন নির্দেশনা বাজারে শৃঙ্খলা ফেরাতে এবং দুর্বল পারফরম্যান্সের কোম্পানিগুলোর ব্যবস্থাপনায় ইতিবাচক পরিবর্তন আনবে বলে আশা করা হচ্ছে।

বিশ্লেষকরাও মনে করছেন, এ ধরনের নীতিগত হস্তক্ষেপ বিনিয়োগকারীদের জন্য নিরাপত্তা নিশ্চিত করার পাশাপাশি বাজারে পেশাদার পরিচালনার সংস্কৃতি গড়ে তুলবে। পাশাপাশি, এটি কোম্পানিগুলোকে নিজেদের কর্পোরেট গভার্নেন্স চর্চা উন্নত করতে উৎসাহিত করবে এবং দায়বদ্ধতা প্রতিষ্ঠায় গুরুত্বপূর্ণ ভূমিকা রাখবে।

https://sharenews24.com/article/103524/index.html?fbclid=IwZXh0bgNhZW0CMTEAAR5Rsz0sZO-WfbR7XWDTOT3C5fK78SG3ugvntQ0jx-3TqQES3aNEdXORpfCLMw_aem_CggmORhvkmyZfomWfpl9hw

The stock market regulator has given permission to the Dhaka Electric Supply Company (DESCO) to issue another 2.38 million preference shares to the government against share money deposits.

The state-owned power distributor will issue shares worth Tk 23.81 million at a face value of Tk 10 each, according to a stock exchange filing on Monday.

The preference shares will be non-cumulative in nature, meaning the government will not be entitled to the missed dividends.

In July last year, the power supplier issued 607.69 million preference shares to the government against share money deposits to comply with a regulatory directive.

The company prefers to issue preference shares, considering that existing shareholders will not be affected, said an official of the company, requesting not to be named.

Although preference shares will not be added to equity shares, it will increase fixed payment liabilities for the company as the government will get priority over common stocks during the sharing of profits.

Thus, existing shareholders’ return on investment would be slashed by the dividend payout to the government against preference shares.

Usually, the dividend payment is made at a fixed rate against preference shares, but in this case, it will vary according to the company’s earnings.

As per the approval, the dividend will be determined by multiplying the ratio of preference share capital out of the total capital (ordinary share capital plus preference share capital) with 15 percent of the profit after tax.

That means the lion’s share of profits will be distributed to general shareholders in dividends.

Share money deposit is the money paid in exchange for shares that have not been acquired yet.

The government injected funds into DESCO on several occasions for the implementation of different projects to supply power efficiently since its inception in 1996.

DESCO had received more than Tk 6.42 billion in total from the government as share money deposits. However, it already issued shares worth more than Tk 6.07 billion in July last year.

Following the latest disclosure, the company’s stock dropped 2.65 per cent to Tk 22 per share on Monday on the Dhaka Stock Exchange.

Financial Performance

DESCO suffered a record loss of Tk 5.41 billion in FY23 for the first time due to a huge foreign exchange loss.

Despite the loss, the company paid a 10 per cent cash dividend from its retained earnings.

In FY24, the company again made a loss of Tk 5.05 billion for the same reason and declared no dividend for the year as retained earnings turned negative.

DESCO is still in the red with a loss of Tk 785 million in the nine months through March this year although revenue almost doubled year-on-year to Tk 6.78 billion during the period.

The company’s long-term interest-bearing debt burden grew nearly 10 per cent year-on-year to Tk 30.16 billion in the nine months through March this year.

https://thefinancialexpress.com.bd/trade/desco-to-issue-more-preference-shares-to-govt

বাংলাদেশ ব্যাংকের গভর্নর আহসান এইচ মনসুর বলেছেন, ছয়টি ব্যাংককে জুলাইয়ের মধ্যে সরকারের মালিকানায় এনে প্রয়োজনীয় মূলধন সরবরাহ করা হবে। ইতোমধ্যে কেন্দ্রীয় ব্যাংক এসব ব্যাংককে তারল্য সহায়তা দিয়ে রেখেছে। নানা অনিয়ম ও ঋণ জালিয়াতির কারণে দুর্বল হওয়ায় ছয়টি ব্যাংককে আগামী জুলাইয়ের মধ্যে একীভূত করা হবে। তবে এসব হবে সাময়িক সময়ের জন্য।

বিজ্ঞাপন
বেসরকারি একটি টেলিভিশনের সাক্ষাৎকারে এসব কথা বলেন তিনি।

ছয় ব্যাংকের মধ্যে রয়েছে—ফার্স্ট সিকিউরিটি ইসলামী ব্যাংক, সোশ্যাল ইসলামী ব্যাংক, ইউনিয়ন ব্যাংক, গ্লোবাল ব্যাংক, এক্সিম ব্যাংক ও ন্যাশনাল ব্যাংক। এর মধ্যে পাঁচটি ব্যাংকই এস আলমের নিয়ন্ত্রণে ছিল। বাকি ব্যাংকটি নজরুল ইসলাম মজুমদারের নিয়ন্ত্রণে ছিল।

বিজ্ঞাপন
গভর্নর আহসান এইচ মনসুর বলেন, তবে সরকারের হাতে ব্যাংকগুলো টেম্পোরারি (সাময়িক) থাকবে। তারপর আমরা এসব ব্যাংকের শেয়ারগুলোকে পাবলিকের কাছে হস্তান্তর করব। আমরা ইন্টারন্যাশনাল স্ট্র্যাটেজিক ইনভেস্টরদের কাছে হস্তান্তর করব। তবে এমনটা করা হবে ব্যাংক রি অর্গানাইজেশন হওয়ার পরে।

ব্যাংক গুলোর ক্যাপিটাল অ্যাডোকেসি রেশিও চার বছরের মধ্যে ১২.৫ থেকে ১৫ শতাংশে উন্নীত করা হবে বলে আশাবাদ ব্যক্ত করেন গভর্নর। 

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Runner Automobiles has officially launched the world’s top selling “eco-friendly and cost-effective” two-wheeler electric Chinese scooter Yadea’s several new models.

The launching ceremony was held at the Bangladesh-China Friendship Conference Center on Sunday, introducing Bangladeshi riders to popular models — T5, M6, Ruibin, and G150P — along with two newly-added modern and stylish electric scooters — GT60 and E8S200.

The event also featured test rides for participants.

“Customer satisfaction is our top priority, and Yadea is committed to ensuring product quality and excellent after-sale services,” said Hafizur Rahman Khan, chairman of Runner Group, at the launching event.

Yadea is to lead the change towards a greener world with its exceptional electric two-wheeler market in Bangladesh, reads a press release issued on Sunday.

With the starting price of Tk 120,000 per unit, Yadea scooter has a great competitive edge in the electric two-wheeler market in Bangladesh securing a mileage of Tk 0.14, according to the statement.

Runner will leverage the brand value of Yadea and its sales and service network in expanding its business.

In 2022, Yadea’s electric scooter sales reached 5 million units, representing over half of the global market share. Runner Automobiles is the sole agent of Yadea in Bangladesh and assembles Yadea electric scooters for customers.

The partnership is expected to help Runner recover from its business slowdown.

Having suffered losses in the two years to FY24, Runner returned to the green zone in the second quarter (October-December) of FY25 as the dollar crisis eased.

The country’s pioneering motorcycle manufacturer reported a consolidated profit of Tk 68.32 million for the January-March quarter this year, against losses worth Tk 153 million in the same quarter a year ago.

“The thriving business of three wheelers supported an increase in revenue, while cost control and efficient fund management helped increase profitability,” said Shanat Datta, chief financial officer of Runner Automobiles.

Three-wheeler sales more than doubled during the quarter, compared to the same quarter of the previous year, backed by higher demand and enhanced marketing activities. The commercial vehicle segment also continued to show improved performance, said Mr Datta.

Runner’s three-wheeler manufacturing plant, established in February 2023 with technical support from Indian Bajaj, supported the increase in the overall sales of three wheelers and attracted customers with price benefits.

“We remain confident in the growth plan supported by increasing demand in the three-wheeler segment, and encouraging early positive results from eBike initiatives in the two-wheeler segment,” said Mr Datta.

Thanks to first-quarter heavy losses, the nine-month profit through March of FY25 was squeezed to Tk 7.95 million, but it still bears signs of recovery from a loss of Tk 427 million in the same period of the previous year.

Meanwhile, Runner stock fell 0.78 per cent to Tk 25.40 per share on Sunday on the Dhaka Stock Exchange.

https://today.thefinancialexpress.com.bd/stock-corporate/runner-to-take-eco-friendly-two-wheeler-market-share-with-chinese-scooters-1748198621

The Bangladesh Shipping Corporation (BSC) plans to float tenders in a couple of weeks to buy two bulk carriers from China with its own funds.

“I am ready with tender documents. Waiting for the ministry’s approval to float,” BSC Managing Director Commodore Mahmudul Malek told The Financial Express.

He returned from China last week after visiting a shipyard named New Dayang Shipbuilding Co Ltd along with Shipping Secretary Mohammed Yousuf.

Mr Malek earlier visited another shipyard named Jiangsu Yangzi-Mitsui Shipbuilding Co Ltd in December last year.

The BSC’s technical team earlier also visited two more shipyards to see various under-construction ships.

“We visited the shipyards having the potential to supply ships, and they are top builders worldwide,” said Mr Malek.

The majority of the bulk carrier ships are being constructed in China, he said.

He also said a plan is there to seek proposals from the shipbuilders who have near-ready ships so that they can supply vessels without a long delay. According to him, the BSC plans to buy solid bulk carriers to carry products like coal and fertiliser.

The ships will be of around 56,000 Deadweight Tonnage (DWT), having around 199 metres of length, around 33 metres of width, and nearly 18 metres of water draft.

After acquiring the vessels, the BSC will charter them out to foreign operators.

“Shipping is the most profitable business now. I need ships. We will charter them out,” Mr Malek told The Financial Express earlier.

The corporation is also working on buying two crude oil mother tankers and two mother bulk carriers with funding from the Export-Import Bank of China.

The China National Machinery Import and Export Corporation (CMC) will supply each oil tanker at a price of $73 million and each bulk carrier at $44 million as per the deal signed on October 14, 2023.

The BSC bought six vessels from China a few years back. Of those, one was destroyed in a missile attack in the Red Sea in 2022.

Now the corporation has five ships, which have been chartered.

https://today.thefinancialexpress.com.bd/public/last-page/bsc-to-float-tenders-soon-to-buy-two-bulk-carriers-1746383194

The country’s leading biscuit and confectionery producer Olympic Industries has decided to invest in “multi colour  cookie production” to stay ahead of competitors after its recent investment in production of crackers, chocolate, chanachur, and cake.

In a stock exchange filing on Thursday, the company said its board of directors had planned to purchase new machinery to produce multi-coloured cookies.

Olympic Industries now produces 49 types of biscuits and 7 types of cookies along with various snacks, powder drinks, batteries, and bakery items, such as cake, and confectionery.

It is going to install a brand-new production line with standard accessories having production capacity of 9,048 metric tons of the new type of cookies a year. The cost of machinery import from China and installation is estimated to be $1.08 million or Tk 132 million.

The new production setup will be at Madanpur factory, Keodhala in Narayanganj.

Meanwhile, the stock rose 2.18 per cent to Tk 144.50 per share on Thursday on the Dhaka Stock Exchange.

The company started investing in new segments after enduring a 40 per cent year-on-year decline in profit to Tk 1.2 billion in FY22. Its earnings rose to Tk 1.56 billion in the next fiscal year and then to Tk 1.83 billion in FY24.

Olympic Industries has an annual capacity of approximately 129,656 metric tonnes of biscuits and bakery items.

In February 2022, Olympic commissioned a new cracker and hard dough biscuit line with a capacity of 12,442 metric tonnes per year. Three years later it invested Tk 13.66 crore to establish a multi-functional chocolate plant.

The plant has a production capacity of 3,300 tonnes per year and is located at Lolati factory in Sonargaon, Narayanganj.

In the meantime in August 2024, Olympic invested Tk 22.71 crore to set up a new chanachur factory. The plant at Kutubpur in Narayanganj is capable of producing 6,600 tonnes per year.

Highlights:

• Renata’s Tk1,000 crore expansion stalled due to global disruptions
• Taka devaluation inflated project cost by Tk400 crore
• Profit margins dropped from 18% to 5%
• Loan burden grew from Tk480 crore to Tk1,900 crore
• Government price controls limit cost-pass-through on essential medicines
• Renata discontinued 194 products amid unsustainable losses

Just before the world began grappling with Covid-19 pandemic, Renata, one of Bangladesh’s leading pharmaceutical companies, was gearing up for a major leap. The company had chalked out a Tk1,000 crore investment plan to scale up operations in response to growing domestic and international demand.

But then came the pandemic.

The virus brought global supply chains to a grinding halt, forcing the drug maker to put its expansion ambitions on hold. The disruptions didn’t end there.

As the world economy was trying to find its footing after the pandemic, the Russia-Ukraine war sent commodity prices soaring, triggering a chain reaction that proved especially costly for import-dependent countries like Bangladesh. The taka, which traded at around Tk85 against the US dollar in early 2022, plummeted to Tk110 within six months—and further slid to Tk120 in just another six. The massive depreciation inflated Renata’s expansion costs by Tk400 crore, pushing the project’s total outlay to Tk1,400 crore.

And with that, the economics of expansion changed drastically.

Borrowing costs surged, and so did the prices of imported raw materials. As a result, Renata’s profit margins shrank dramatically—from 18% a few years ago to a mere 5% now. The sharp decline in profitability is largely attributed to escalating loan repayment burdens. Company data shows that Renata’s total loans stood at Tk480 crore in June 2021, but ballooned to Tk1,900 crore by March this year.

Yet, despite the cost pressures, pharmaceutical companies are restricted from adjusting the prices of most of their products. “As per government regulations, we cannot raise prices for 117 essential medicines. Even for the rest, approvals are difficult to obtain,” said Kaiser Kabir, CEO and managing director of Renata, in an interview with The Business Standard.

The inability to pass on rising costs to consumers has forced Renata to make tough decisions. The company has already discontinued 194 out of its 626 products, citing sustained losses. “If prices are not allowed to adjust, only two or three companies will be able to survive in this industry,” Kabir warned.

Renata, which evolved from the erstwhile Pfizer operations in Bangladesh, has heavily invested in research and development to remain competitive. The company currently manufactures 75 bio-equivalent products—therapeutically identical to innovator drugs—which require significant R&D investment. Last year, Renata spent Tk100 crore on research. This year, that figure is expected to rise to Tk165 crore, marking a 65% increase.

Industry leaders share similar concerns. Muhammad Halimuzzaman, treasurer of the Bangladesh Association of Pharmaceutical Industries and CEO of Health Care Pharmaceuticals, reiterated the urgency of a price revision. “Prices of everything have gone up—utilities, raw materials, logistics. Medicines are not produced on a different planet,” he said. “If the government does not act now, the industry risks collapse.”

Renata’s expansion plan

In 2019, Renata planned to invest Tk1,000 crore in capital and machinery, backed by Tk500 crore in fixed deposits and an annual profit of Tk500 crore. However, the pandemic delayed machinery shipments from Europe and the US, postponing the expansion project. The rising dollar rate further increased costs.

Despite these challenges, Renata continued with the investment, leading it to take high-interest loans from banks, which impacted its financial costs and profits. To ease the burden, the company attempted to raise capital by issuing long-term bonds and preference shares. These efforts failed as institutional investors were deterred by the more attractive interest rates on government treasury bonds.

In October 2023, anticipating further interest rate hikes, Renata planned to raise Tk850 crore through zero-coupon bonds and preference shares to repay short-term loans. The Bangladesh Securities and Exchange Commission (BSEC) approved the issuance of Tk660 crore in zero-coupon bonds and Tk350 crore in preference shares. However, the fundraising attempt was unsuccessful due to poor subscription amid high treasury bond yields.

In March, the BSEC extended the subscription period. With this extension, Renata managed to raise Tk225 crore from preference shares and Tk150 crore from zero-coupon bonds, according to officials.

How Renata’s profits decline

According to the company’s financial statements, it earned over Tk500 crore in profit during the 2020–21 and 2021–22 fiscal years. However, its profit dropped to Tk233 crore in 2022–23.

In 2023–24, profit rose slightly to Tk361 crore, but in the first nine months of the current fiscal year, Renata’s profit fell by 35%, reaching Tk168 crore. At the same time, finance costs increased by 56%.

https://www.tbsnews.net/economy/industry/how-renatas-tk1000cr-investment-plan-became-tk1400cr-problem-1147861?amp