The securities regulator has turned down Baraka Power’s application to raise authorised capital through issuance of preference shares due to non-compliance of securities rules.
The company failed to comply with the securities rules in respect of maintaining joint-holding of minimum 30 per cent shares of the paid-up capital of the company by its sponsor/promoter group at least for three years from the date of according consent, said a statement on Tuesday.
The sponsor-directors own only 18.93 per cent stake in the company as on April 30, 2018 while the institutional investors own 24.93 per cent and the general public 56.14 per cent.
The company’s paid-up capital is Tk 2.0 billion and authorised capital is Tk 3.0 billion while the total number of securities is 200.05 million.
The power generation company, which was listed with the Dhaka bourse in 2011, disbursed 5 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2017.
Each share of the company closed at Tk 27.70 on Monday at the DSE.
Earlier, the board of directors of the Baraka Power had applied for increasing the authorised capital of the company from Tk 3.0 billion to 4.0 billion.
The board had also decided to issue 8,00,00,000 non-listed, non-convertible, cumulative, redeemable preference share of Tk 10 each amounting Tk 800 million through private placement for meeting up financing needs of the company.
The company’s consolidated earnings per share (EPS) stood at Tk 0.36 for January-March 2018 as against Tk 0.71 for January-March 2017.
In nine months for July 2017-March 2018, its consolidated EPS was Tk 1.51 as against Tk 2.13 for July 2016-March 2017.