The National Tea Company shocked stock traders when its share price dropped by a significant 59.89% to Tk 251, compared to Tk 626 on May 14. This sharp decline was a result of the company issuing new ordinary shares and making subsequent price adjustments. The company had received regulatory approval in April to issue 2.34 crore ordinary shares at Tk 119.53 each, including a premium of Tk 109.53, with the goal of raising Tk 279.7 crore in paid-up capital. Consequently, trading of National Tea’s shares was suspended on May 15, and the halt continued to May 16 due to incomplete price adjustments.
After the adjustments were completed, the share price experienced a significant drop. The placement shares were issued to support business growth, including field and factory development, and to finance working capital and repay bank loans. Of the total shares, 1.24 crore shares were allocated to the government, Investment Corporation of Bangladesh, and Sadharan Bima Corporation, while other directors and general shareholders received 13.80 lakh shares and 95.39 lakh shares, respectively. The share subscription will be open from July 10 to September 10.
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