GPH Ispat Ltd is seeking nearly Tk968 crore from existing shareholders through a rights issue to repay loans, as the steelmaker moves to reduce its debt burden following an improvement in earnings.
According to a regulatory disclosure published on the Dhaka Stock Exchange on Sunday, the company’s board has proposed issuing 96.78 crore rights shares at Tk10 each in a 2:1 ratio, allowing shareholders to subscribe to two new shares for every one ordinary share they currently hold.
The proposed rights issue is subject to approval from the shareholders and the regulatory body, the Bangladesh Securities and Exchange Commission (BSEC).
GPH Ispat said the entire proceeds from the issue would be used for loan repayment.
A separate record date will be announced after receiving BSEC approval to determine the shareholders eligible to subscribe to the rights shares.
The proposal comes as the steelmaker reported a turnaround in financial performance for the year ended 30 June 2026.
Its earnings per share rose to Tk0.07 in FY26 from a loss of Tk0.51per share in the previous financial year. Net asset value per share increased slightly to Tk51.81 from Tk51.72, while net operating cash flow per share jumped to Tk15.73 from Tk5.78.
Despite raising capital mainly for debt repayment, GPH Ispat’s board recommended a 2 per cent cash dividend only for the general shareholders for the financial year ending in June 2026.
Sponsors and directors, who hold 14.62 crore shares, will not receive the dividend, according to the company.
The total cash dividend payable to eligible general shareholders would amount to Tk6.75 crore.
The annual general meeting is scheduled for 25 October 2026 at 11:00 am through a hybrid arrangement. Shareholders will be able to participate physically at Shah Newaz Eden Park in Fauzderhat, Sitakunda, Chattogram, as well as through a digital platform.
GPH Ispat shares, with a face value of Tk10, closed 3.09 per cent lower at Tk15.70 on the Dhaka Stock Exchange on Sunday.
