GPH Ispat Ltd has proposed raising nearly Tk 9.68 billion through a rights share issue to repay loans, as the steel manufacturer seeks to strengthen its financial position and reduce its debt burden.
The company’s board has approved a proposal to issue 967.77 million rights shares at an issue price of Tk 10 each, subject to shareholder and regulatory approval.
Under the proposed rights offer, eligible shareholders will be entitled to two rights shares for every one ordinary share held, or a 2:1 ratio.
The proceeds will be used specifically to repay loans, according to the company’s disclosure on Sunday.
A separate record date will be fixed later to determine shareholders’ entitlement to the rights shares after obtaining approval from the Bangladesh Securities and Exchange Commission (BSEC).
The proposed rights issue, if approved, would significantly increase the company’s equity base. GPH Ispat currently has 483.88 million outstanding shares.
The rights issue proposal comes alongside the company’s latest dividend declaration.
The board has recommended a 2 per cent cash dividend for general shareholders, excluding sponsors and directors, for the financial year ended June 30, 2026.
The company said the cash dividend payable to general shareholders would amount to Tk 67.5 million.
The record date for the dividend has been set for October 1, 2026. The company will hold its Annual General Meeting (AGM) on October 25 under a hybrid arrangement, combining physical presence with participation through a digital platform.
GPH Ispat reported a significant improvement in its earnings during FY26. Its earnings per share (EPS) stood at Tk 0.07, compared with a loss of Tk 0.51 per share in the previous financial year.
The company reported a net profit of Tk 33.87 million in FY26, against a net loss of Tk 246 million in the previous year.
Following the disclosure, GPH Ispat’s share price rose 1.23 per cent to Tk 16.40 after the first hour of trading at 11:00 am on Sunday on the Dhaka Stock Exchange.
