FE Report (February 02, 2011)
Investment Corporation of Bangladesh (ICB) has decided to increase its liquidity flow through issuing three right shares against four existing shares, official sources said.
Intervening the capital market with injecting available fund is the root cause for the issuance of the proposed right shares, a high ICB official said.
The value of each right share has been fixed at Tk 1,000 with a premium of Tk 900.
"Increasing the supply of good shares and enhancing the financial capacity of ICB to support the capital market in need are the major reasons to issue the right shares," a general manager of the Corporation told FE on Tuesday.
"Extra fund of about Tk 20 billion will be in the account of ICB after getting the subscription fee against the right shares," he added.
Presently, government owns 27 per cent stake of ICB, 70.19 per cent by institutions and the remaining 2.81 per cent is held by public.
The authorized capital of ICB is Tk5.0 billion, while the paid-up capital is Tk 2.5 billion.
ICB officials said they are now facing dearth of liquid fund to intervene in the market. Recently, Bangladesh Bank has lent Tk 4.0 billion to ICB to intervene in the market.
The ICB sent the proposal to Ministry of Finance (MoF) last week for approval.
Officials in the MoF said they are aware of the fund shortage of ICB.
They said MoF is in favour of strengthening the financial capacity of the Corporation as the ministry has to ask ICB often to buy shares from the market when volatility arises.
Investment Corporation of Bangladesh (ICB) has decided to increase its liquidity flow through issuing three right shares against four existing shares, official sources said.
Intervening the capital market with injecting available fund is the root cause for the issuance of the proposed right shares, a high ICB official said.
The value of each right share has been fixed at Tk 1,000 with a premium of Tk 900.
"Increasing the supply of good shares and enhancing the financial capacity of ICB to support the capital market in need are the major reasons to issue the right shares," a general manager of the Corporation told FE on Tuesday.
"Extra fund of about Tk 20 billion will be in the account of ICB after getting the subscription fee against the right shares," he added.
Presently, government owns 27 per cent stake of ICB, 70.19 per cent by institutions and the remaining 2.81 per cent is held by public.
The authorized capital of ICB is Tk5.0 billion, while the paid-up capital is Tk 2.5 billion.
ICB officials said they are now facing dearth of liquid fund to intervene in the market. Recently, Bangladesh Bank has lent Tk 4.0 billion to ICB to intervene in the market.
The ICB sent the proposal to Ministry of Finance (MoF) last week for approval.
Officials in the MoF said they are aware of the fund shortage of ICB.
They said MoF is in favour of strengthening the financial capacity of the Corporation as the ministry has to ask ICB often to buy shares from the market when volatility arises.
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