The Bangladesh Securities and Exchange Commission (BSEC) has rejected the right shares issuance of HR Textile Limited because the company failed to submit the required documents within the stipulated time.
The commission has issued letters to the related parties in this regard.
BSEC Executive Director Mohammad Rezaul Karim said the commission sent HR Textile a deficiency letter regarding some non-compliances of the company. But it failed to submit the answers within the deadline.
A deficiency letter is what the commission sends to the issuer company requesting additional information about its registration statement.
According to sources, the company wanted to issue the right shares for raising its paid-up capital in order to comply with the regulatory requirement of minimum Tk30 crore paid-up capital.
"But now that the company has got a loan, it does not seem interested in issuing right shares anymore. Therefore, it did not submit the documents within the deadline," they further said.
In 2022, the company decided to increase its paid-up capital by issuing right shares at a 1:1 ratio for the expansion of production facilities and repayment of high-priced loans from banks and financial institutions.
It wanted to issue the right shares at Tk20 each including a Tk10 premium on the face value.
HR Textile Mills was listed on the stock exchanges in 1997. The company exports knit fabrics and garments to Canada, as well as other countries in Asia, and the European Union countries.
The company's shares were stuck at the floor price of Tk115.90 each at the Dhaka Stock Exchange on Monday.