Renata Limited plans to raise Tk350 crore by issuing 35 crore preference shares at Tk10 each, approved by the Bangladesh Securities and Exchange Commission (BSEC). These preference shares, offering a 9-10% annual dividend, aim to repay a portion of Renata’s outstanding short-term loans to banks.
The issuance aligns with Renata’s strategy to address rising interest rates by retiring its entire Tk700 crore short-term loan. This initiative follows Renata’s financial performance, with a 17% revenue growth to Tk1866.50 crore from July to December 2023. However, its profit declined by 9% to Tk190 crore due to increased raw material costs.
Renata’s net profit dropped over 54% to Tk231 crore in FY22-23, leading to a decrease in earnings per share from Tk44.56 to Tk20.21. Consequently, Renata paid a lower dividend of 62.5% cash for FY23 compared to the previous year’s distribution.
Source for more details:
