The Bangladesh Securities and Exchange Commission (BSEC) has approved Dhaka Electric Supply Company (Desco) Limited to issue 60.76 crore preference shares at Tk10 each to the government, converting a Tk607.69 crore share money deposit received for its annual development plan into equity. The decision aligns with the Financial Reporting Council’s 2020 directive mandating that such deposits be converted into share capital within six months.
These irredeemable, non-cumulative preference shares will prioritize dividends to the government before ordinary shareholders, affecting dividend distribution but not Desco’s paid-up or common share capital. Consequently, this issuance will not impact earnings per share (EPS) calculations. In profitable years, the government will receive higher dividends, while no dividends will be issued in loss-making years. This move ensures the government receives prioritized returns without altering Desco’s financial structure significantly.
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