Power Grid Company to issue 250cr preference shares

The Power Grid Company Ltd on Sunday got the go-ahead from the Bangladesh Securities and Exchange Commission (BSEC) to issue preference shares against its share money deposit.

Share money deposit is money the government paid in exchange for shares that had not yet been acquired.

In a press release, the regulator said the electricity producer will issue 250 crore preference shares to the Ministry of Power, Energy and Mineral Resources.

Preference shares are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.

The BSEC said the preference shares will not be included in its ordinary shares, so its paid-up capital will not increase after the issuance of shares.

The stock market regulator said this as the stock investors feared that the issuance of the shares may impact the company's earnings per share along with dividends.