Sinobangla, Web Coats to raise Tk 25cr

Sinobangla Industries and Web Coats PLC yesterday got approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise funds of Tk 25 crore.

Sinobangla, a listed plastic packaging manufacturer, got the go-ahead to raise funds of Tk 20 crore by issuing right shares, which are new shares issued by a company to its existing shareholders.

It would issue 1 crore right shares at a price of Tk 20, including the premium price of Tk 10. Existing shareholders can get one share against two existing shares. With that, the company will raise funds of Tk 20.19 crore.

With the right share proceeds, Sinobangla will purchase capital machinery and repay bank loans.

The company's earnings per share stood at Tk 0.32 at the end of first quarter of fiscal 2022-23. Meanwhile, its net asset value per share was Tk 28.19 as of September 30, 2022.

Likewise, Web Coats PLC got approval to raise funds of Tk 5 crore by issuing 50 lakh ordinary shares at a face value of Tk 10.

With the funds, the company will buy machinery and repay loans.

In the first nine months of fiscal 2022-23, the company's earnings per share was Tk 1.50. Its net asset value per share was Tk 15.92 as of March 31, 2023.

However, the BSEC gave a condition to the company that it would not be allowed to issue any bonus shares in the next three years starting from the trading date of the shares.