GPH Ispat to raise Tk 967.77 crore through rights shares

GPH Ispat, one of the leading steel manufacturing companies in Bangladesh, will raise Tk 967.77 crore through issuing rights shares.

According to a Dhaka Stock Exchange (DSE) disclosure today, GPH Ispat will issue two rights shares for every one ordinary share held, at an issue price of Tk 10 each.

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This will result in the issuance of 96.77 crore rights shares, subject to approval from shareholders at the upcoming annual general meeting (AGM) and from regulatory authorities.

The company said the proceeds would be used for the repayment of loans.

A separate record date will be fixed to determine shareholders' entitlement to the rights shares after GPH Ispat obtains approval from the Bangladesh Securities and Exchange Commission (BSEC).

A rights share issue allows a company to raise fresh capital by offering new shares to its existing shareholders in proportion to their current holdings, rather than to new investors.

Alongside the rights issue announcement, the company reported its financial performance for the year ended June 30, 2026.

GPH Ispat reported earnings per share of Tk 0.07 for the year ended June 30, 2026, against a loss per share of Tk 0.51 in the same period the previous year.

Net operating cash flow per share stood at Tk 15.73 for the year ended June 30, 2026, compared to Tk 5.78 for the year ended June 30, 2025.

Meanwhile, the board has recommended a 2 percent cash dividend for general shareholders, excluding sponsors and directors, for the year ended June 30, 2026. The company had paid a 5 percent cash dividend the previous year.

Sponsors and directors hold 14.62 crore shares in the company. The cash dividend payable to general shareholders amounts to Tk 6.75 crore.

As of August 31, 2026, sponsors and directors held 30.22 percent of shares of the company, with institutes and the general public holding the remaining.

Shares of the steel producer declined 3.09 percent to Tk 15.70 at the end of trading today at the DSE.