BSEC extends deadline for Berger's rights issue fund utilisation by one year
The share price of the paints maker closed at Tk1,393.10 on the Dhaka stock exchange today
Berger Paints Bangladesh – a publicly traded multinational company – has received approval from the Bangladesh Securities and Exchange Commission (BSEC) to extend the deadline for utilising proceeds from its rights share issuance by one year.
The previous deadline of 31 March 2026 has now been extended to 31 March 2027. The company was formally notified of the approval through a letter issued today (12 April).
Company Secretary Khandker Abu Jafar Sadique told The Business Standard that the company had applied to the regulator seeking additional time.
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"We received the approval letter today. The Commission has extended the utilisation period for all project-related expenditures by one year," he said.
Market insiders say the extension will support the company's ongoing expansion initiatives.
The company had earlier submitted a revised proposal to the BSEC seeking changes to the utilisation timeline of the rights issue proceeds. Under the revised plan, the deadlines for spending on land and infrastructure development, machinery and automation, as well as consultancy and other project-related costs have all been extended.
Earlier, the company's Board of Directors also revised the investment plan for establishing its third factory, increasing the total cost from Tk813 crore to Tk980 crore.
The increase was approved to incorporate design changes aimed at improving efficiency through enhanced automation, instrumentation, and a Manufacturing Execution System (MES). Higher construction costs driven by inflation also contributed to the revision.
Berger Paints noted that the adjustment was necessary due to a delay in the commencement of commercial production at its third factory, located at the national special economic zone. The change in the project timeline prompted the company to seek an extension to better align fund utilisation with the updated implementation schedule.
With the regulator's approval now in place, the company will be able to execute the project within a more realistic timeframe.
The share price of the paints maker closed at Tk1,393.10 on the Dhaka stock exchange today.
Berger Paints paid a 500% cash dividend, amounting to Tk231.88 crore, for the fiscal year 2023-24, which ended on 31 March. This represents the highest-ever dividend payout.
