Berger to invest Tk813 crore to set up third factory

Berger Paints Bangladesh Limited has decided to invest Tk813 crore to set up its third factory in the Bangabandhu Sheikh Mujib Shilpa Nagar.

The decision came out in its board of directors meeting held on Wednesday (24 January) evening.

The company said it expects to start production in the new factory in April 2026.

Besides, Berger Paints Bangladesh decided to raise paid-up capital through the issuance of right shares at a 1R:17 ratio to all shareholders, meaning that it will give one right share against the existing 17 shares.

However, it's parent company J & N Investments (Asia) Limited, which holds 95% shares of the company, will not exercise it's right to buy the right shares and the company offered the 25.92 lakh right shares to it's general shareholders and employees so that free float shares increase to 10% as instructed by the securities regulator.

A total of 4.09 lakh of the right shares will be issued among the employees and the remaining 21.82 lakh shares will be offered to general shareholders.

Finally, the general shareholders are entitled to have 1 right shares against one existing share at Tk1,376.

The offer is subject to shareholders approval at the extraordinary general meeting and also the nod from the securities regulator.

The company has set the issue price of the right share at Tk1,376 each including a premium of Tk1,366 each.

Berger will raise Tk375 crore by issuing 27 lakh rights shares, where the fund will be used to set up the third factory.

The issuance of the right shares will be implemented subject to the stock regulator's approval.