Business Report :
GPH Ispat Limited, a leading steel manufacturer in the country, has now decided to issue preference shares to raise up to Tk500 crore to refinance its existing loans.
Earlier in August, the GPH Ispat unveiled a plan to raise Tk242 crore issuing rights shares to enhance its production capacity and meet growing demand both locally and internationally.
In a disclosure on Tuesday in a stock exchange filing, the issuance of non-convertible, cumulative, redeemable and non-participative preference shares subject to approval from the Bangladesh Securities and Exchange Commission (BSEC).
Preference shares are company stock with dividends that are paid to shareholders before common stock dividends are paid out.
However, the company recommended 10% cash dividend only for the general shareholders except sponsors and directors for fiscal year 2023-24. In FY23, it paid 5% cash and 5% stock dividends for its shareholders.
According to the disclosures, its sponsors and directors hold over 22.62 crore shares out of over total 48.38 crore shares and cash dividend payable to the general shareholders is Tk25.76 crore.
The company reported an earnings per share (EPS) of Tk1.77 for FY24, which was Tk0.58 in the previous fiscal year.
In an explanation for increasing EPS, it said, EPS increased to Tk1.77 from Tk0.58 in the previous year. While the operating profit remained the same as last year, the company effectively managed its foreign currency exchange losses.