The state-owned Power Grid Company of Bangladesh Ltd will raise its paid-up capital by Tk251.81 core through issuing shares to its parent organisation Bangladesh Power Development Board (BPDB).
The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday allowed the company to sell 25.18 crore shares at a face value of Tk10.
The shares will remain locked-in as a strategic investment, said Md Saifur Rahman, executive director and spokesperson of the Bangladesh Securities and Exchange Commission.
He added that the Power Development Board will not be able to sell or transfer the shares without approval of the stock market regulator.
However, the BPDB will not pay cash to the company against the shares.
Power Grid officials said as per the 2002 vendor agreement, the BPDB provided the company with various material including electricity transmission lines, rehabilitation, station renovation and vehicles worth of Tk17.17 crore.
Besides, as per 2007 vendor agreement, the Power Development Board provided the company with similar items worth Tk234.64 core.
Under the above two agreements, the BPDB provided the Power Grid Co. with valuables worth Tk 251.81 crore in total. That is why the Power Grid Co. will issue shares to that amount and thus the paid-up capital of the company will go up.
At present the paid-up capital of the Power Grid Co. is Tk461 crore. This will increase to Tk713 crore after the shares are issued to BPDB.
In the 2018-19 fiscal year, the Power Grid Co. had declared 20 percent dividend for its shareholders.
The company will hold its annual general meeting on January 25, 2020, and December 22 has set as the record date - the cut-off date to determine which shareholders are eligible to receive dividends.
In the first three months of the current fiscal year, the Power Grid Co.'s earnings per share (EPS) was Tk2.87, up from Tk2.43 during the same period in the previous fiscal year.
On Wednesday, the closing price of the company's shares at the Dhaka Stock Exchange was Tk59.