The Bangladesh Securities and Exchange Commission (BSEC) has approved Power Grid Company of Bangladesh’s proposal to issue Tk 250.54 crore in preference shares to the government. This issuance is part of the company’s ongoing effort to convert government share money deposits into shares to support its development projects. Previously, Power Grid issued Tk 764.11 crore irredeemable and noncumulative preference shares and converted Tk 402 crore into general shares at Tk 20 each. The new preference shares, issued at Tk 10 each, will not be included in the calculation of earnings per share (EPS).
By June 2023, the government had provided Tk 10,548 crore as share money deposits, which increased to Tk 11,313 crore by March 2024. Following a 2020 directive from the Financial Reporting Council, state-owned companies like Power Grid have been converting these deposits into preference shares. Power Grid, now the largest company by market value on the Dhaka and Chattogram stock exchanges, saw its market value surge from less than Tk 3,000 crore to over Tk 37,500 crore after an approximately 11-fold increase in its paid-up capital.
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