বাংলাDespite weak business and profit performance, listed company GPH Ispat has taken another initiative to raise a large amount of capital. After announcing a 2% cash dividend for general shareholders for fiscal year 2025-26, the company’s board has proposed issuing rights shares to raise nearly Tk 968 crore.
The engineering sector company disclosed the information through the Dhaka Stock Exchange (DSE) on Sunday (September 13). Under the proposal, the company plans to issue two rights shares against each existing ordinary share. Each rights share will have a price of Tk 10.
If implemented, the proposal would allow GPH Ispat to raise Tk 967.77 crore in fresh capital. However, the company’s earnings per share stood at only Tk 0.07 in fiscal year 2025-26. Its net asset value per share was Tk 51.81 as of June 30, 2026.
The large capital-raising plan may raise questions among investors about the necessity of the funds and how the money will be used. Previously, the Bangladesh Securities and Exchange Commission (BSEC) rejected a rights share proposal submitted by GPH Ispat.
On May 27, 2025, the BSEC rejected the company’s proposal to issue rights shares. At that time, GPH Ispat had sought to raise around Tk 241.94 crore by issuing rights shares at a 1:3 ratio against 16,12,94,485 ordinary shares with a face value of Tk 10 each.
The commission said the proposal was rejected after considering all aspects because the submitted documents were not satisfactory. A few weeks later, on June 22, 2025, the BSEC also rejected GPH Ispat’s proposal to raise Tk 500 crore through preference shares. The company had planned to use the funds to repay debt.
GPH Ispat has therefore taken several capital-raising initiatives within a year. While its previous two proposals failed to receive regulatory approval, the company has now proposed a much larger rights share issue.
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