Sheltech Ceramics raises Tk150 crore through preference shares

Sheltech Ceramics Limited, a leading ceramics manufacturer has raised Tk150 crore by issuing non-convertible cumulative preference shares in the market.

The company officials mentioned that they have taken this significant move to reduce their financial costs. The company management took this step as a proactive measure to minimise future financial risks, they added.

Sheltech Group Chairman Kutubuddin Ahmed told TBS, "We took this step about six months ago when we observed that the financial cost is likely to rise in the coming days."

As per the company plans, they spoke with a number of financial institutions and finally a good number of them - especially some leading banks - have agreed to invest on Sheltech Ceramics' preference shares.

He said it will help them reduce fund costs as interest is moving upward.

As per the prediction, bank interest rates are moving upward said Kutubuddin while adding, "Once it was only 8%, now it has become 10.5% to 11%".

Sheltech Ceramics started its commercial production in February 2019 with a state-of-the-art factory and modern European technology for its exclusive line of floor and wall tiles.

Its first plant started operations with a capacity to produce 1.07 lakh square feet of premium quality wall and floor tiles per day. Without carrying out any advertising campaign, the company has been able to sell all its products, thanks to Sheltech's brand value.

Now it is capable of producing 4.20 lakh square feet of tiles per day, it manufactures a wide variety of world-class wall and floor tiles, both interior and exterior, with the designs, sizes, and textures being based on analysing current market trends and styles preferred by customers.