Bangladesh Securities & Exchange Commission (BSEC) has dropped the application of Baraka Power Ltd to withdraw money from the share market through zero coupon bond issue. BSEC has updated the company about this move in a letter.
This information is known from BSEC sources.
According to DSE sources, the board of directors of Baraka Power decided to cash out Tk 180 crore from non-convertible zero coupon bonds in November last year. The company decided to withdraw this amount to pay off its high-interest debt.
In 2011, the listed company submitted a zero-coupon bond application to the regulator in this regard. BSEC then inquires the application and issues a letter of disapproval. However, the reason why the approval was not given is not mentioned.
According to the company’s 2021 financial reports, the total debt is Tk 358 crore. Most of which are taken at high interest.
The current number of shares of the company is 23 crore 54 lakh 65 thousand 661. Among them, the number of shares of entrepreneurs-directors is 31.87pc, and the number of shares of regular investors is 40.82pc. In addition, the number of shares of institutional investors is 27.51pc. The company’s shares last traded at Tk 22.40 on Tuesday.
