Bangladesh’s Envoy Textiles Limited, said to be the 1st LEED certified company by US Green Building Council globally, and a 100 per cent export-oriented denim fabric manufacturer, which is also the first denim project in Bangladesh with rope-dye technology and considered one of the largest denim manufacturers in the country, is all set to raise Taka 87 crore by issuing preferred stocks.
Media reports maintained this even as citing a disclosure made by Envoy in this regard on the Dhaka Stock Exchange website, reports further added Envoy will issue 8.7 crore preference shares through private placement at a face value of Taka 10 each even as the funds will be raised to be used to finance the company’s upcoming expansion project for the production of blended yarn, and to pre-pay a portion of high-cost borrowing.
Preferred stocks are, reportedly, the shares in a company owned by people who receive a part of the company’s profits before ordinary shareholders are paid.
It may be mentioned here that earlier this July, Envoy announced it would spend Taka 176 crore to expand production capacity of its spinning unit even as the company declared 10 per cent cash dividend for shareholders in the 2020-21 financial year.
