The Bangladesh Securities and Exchange Commission has rejected the rights share offers of Aramit Cement and Republic Insurance as the companies failed to comply with the rules.
According to the Dhaka Stock Exchange’s web posts on Sunday, the BSEC did not approve the rights offers of Aramit Cement and Republic Insurance as the companies failed to comply with the rights issue requirement of the sub-section ‘f’ of section ‘3’ of the Securities and Exchange Commission (Rights Issue) Rules, 2006.
The BSEC made the decision on October 3.
As per the section of the rights issue rules, an issuer company or any of its directors could not be a bank defaulter to get its rights offer approved.
The department concerned found five directors of Republic Insurance and one director of Aramit Cement bank defaulters, a BSEC sources said.
Aramit Cement in April last year decided to issue one rights share against existing one share at an issue price of Tk 15 including a premium of Tk 5 each.
The company had made the move to strengthen its capital base and expansion of business.
The earning per share of the company was Tk 3.30 in December, 2011 while the net asset value was Tk 12.79 each.
The board of directors of Republic Insurance in April last year decided to issue one rights share against existing one share at an issue price of Tk 15 including a premium of Tk 5 for each share.
The company earned Tk 1.73 against each share in 2011 while net asset value was Tk 13.61 in the year.
-With New Age input
