HakkaniPulp and Paper Mills Limited plans to issue Tk16 crore worth of new shares to address a working capital shortfall and comply with the regulatory paid-up capital requirement of Tk30 crore. The current paid-up capital of Tk19 crore is set to increase to Tk35 crore post-issuance. The company will issue 160 lakh new shares at Tk10 each, with 70 lakh allocated to existing sponsors and directors and the remainder to strategic investors.
The general meeting is scheduled for February 1, 2024, pending general shareholders’ approval, with a record date of January 9. The funds raised will be utilized to bolster working capital and upgrade outdated machinery, aiming for uninterrupted operations.
With the new funds, Hakkani Pulp aims to modify its units and anticipate improved revenue, profits, and better dividends for general shareholders. In Q3 2023, revenue reached Tk26.36 crore, up from Tk20.30 crore YoY. After-tax net profit was Tk3 lakh, earnings per share at Tk0.02, and net asset value per share at Tk24.49 as of September 2023.