BSEC approves Tk45.90cr preference shares for Desco against govt equity

According to a price-sensitive disclosure filed with DSE, the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

Dhaka Electric Supply Company Limited (Desco) has received formal consent from the Bangladesh Securities and Exchange Commission (BSEC) to issue 4.59 crore irredeemable non-cumulative preference shares to the government.

According to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (2 September), the shares carry a face value of Tk10 each, amounting to a total of Tk45.90 crore.

These shares are being issued in favour of the Government of Bangladesh, represented by the Secretary of the Power Division under the Ministry of Power, Energy, and Mineral Resources, against equity already provided by the state.

This marks the third such instance in recent years where the state-owned power distributor has regularised government capital injections through the issuance of preference shares.

Previously, in July 2024, the regulator approved a substantial Tk607 crore issuance, followed by a smaller Tk2.38 crore issuance in May 2025.

Following the announcement, Desco’s share price experienced a marginal correction, edging down by 0.43% to settle at Tk23 on the premier bourse.

The company’s standing in the capital market remains under scrutiny, as it was downgraded to the ‘Z’ or junk category in October 2025 for failing to reward shareholders with dividends for two consecutive financial years.

In terms of financial performance, Desco’s latest unaudited reports indicate a volatile but recovering bottom line. For the first nine months of the 2025-26 fiscal year (July-March), the company reported an earnings per share (EPS) of Tk1.46, marking a significant turnaround from a loss of Tk1.98 per share in the corresponding period of the previous year. However, the third quarter alone (January-March 2026) saw a net loss of Tk0.81 per share, although this was a notable improvement from the Tk1.83 loss recorded a year earlier.

As of 31 March 2026, the company’s net asset value (NAV) per share stood at Tk39.05, while its net operating cash flow per share rose to Tk13.85 from Tk8.98 in the prior year.

Source: The Business Standard