Berger Paints Bangladesh Limited has unveiled plans to invest Tk813 crore in establishing its third factory at the Bangabandhu Sheikh Mujib Shilpa Nagar. The decision was made during a board of directors meeting held on Wednesday evening, with the company anticipating production to commence at the new facility in April 2026.
Additionally, Berger Paints Bangladesh has decided to increase its paid-up capital by issuing right shares at a ratio of 1R:17 to all shareholders, providing one right share for every 17 existing shares. However, the parent company, J & N Investments (Asia) Limited, holding 95% of the shares, will not exercise its right to purchase the right shares. Instead, the company will offer the 25.92 lakh right shares to general shareholders and employees to increase free float shares to 10%, as per regulatory instructions.
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Of the total right shares, 4.09 lakh will be allocated to employees, while the remaining 21.82 lakh shares will be offered to general shareholders. General shareholders will be entitled to one right share for each existing share at Tk1,376.
The proposal is contingent on shareholder approval at an extraordinary general meeting and regulatory clearance. Berger has set the issue price of the right share at Tk1,376 each, including a premium of Tk1,366. The company aims to raise Tk375 crore through the issuance of 27 lakh right shares, with the funds earmarked for the establishment of the third factory. Implementation of the right shares issuance is subject to approval from the stock regulator.
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