Paramount Textile PLC will convert Tk293.01 crore of investment and share money deposits in its subsidiary into preference shares to support financing for a 100-megawatt solar power project.
The company’s board approved the price-sensitive decision at a meeting on Tuesday, according to a disclosure filed with the Dhaka Stock Exchange (DSE).
Under the decision, Tk200 crore will be converted into convertible non-redeemable preference shares, while the remaining Tk93.01 crore will be converted into non-convertible redeemable preference shares.
Dynamic Sun Energy Pvt. Ltd., the project company developing the solar plant, is 60 per cent owned by Paramount Textile. The company said it had made substantial investments in the subsidiary beyond its equity contribution to finance the project.
The board approved the issuance of 20 crore convertible non-redeemable preference shares with a face value of Tk10 each against the Tk200 crore investment. The shares will carry an annual 9 per cent dividend or coupon and will be convertible within five years of allotment.
The remaining Tk93.01 crore will be converted into 9,30,10,000 non-convertible redeemable preference shares, also with a Tk10 face value and a 9 per cent annual dividend or coupon. These shares will be redeemed within five years of allotment.
Shares of Paramount Textile, with a face value of Tk10 each, rose 2.55 per cent to close at Tk68.40 on the DSE on Thursday.
